Weekly Trading Forecasts for Major Pairs (August 7 - August 11, 2017)
7 August 2017, 10:04
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSDDominant bias: Bullish
Last week, price climbed to the resistance line at 1.1900 before the current pullback began presenting good opportunities to go long at better prices as the outlook for the Euro is bullish this week. The likely targets are the resistance lines at 1.1800, 1.1850 and 1.1900.
USDCHF
Dominant bias: Bullish
Recent weakness in CHF has allowed this pair to climb and resulted in the current bullish bias, but it is under threat due to the consolidation last week and closing above the support line at 0.9700. Further consolidation will result in a neutral bias unless price is able to close above the resistance level at 0.9750 or move below the support level at 0.9550 (resulting in a bearish bias, which may happen if CHF gathers bullish momentum).
GBPUSD
Dominant bias: Bullish
This pair remains bullish (but under threat) as price went up last week to test the distribution territory at 1.3250 before a considerable pullback on Thursday and Friday. From the high of last week (1.3262), price dropped 210 pips to close below the distribution territory at 1.3050 (hence threatening the bullish bias). The outlook on GBP pairs is bearish this week, potentially allowing a breach of the accumulation territories at 1.3000 and 1.2950.
USDJPY
Dominant bias: Bearish
There is a clear Bearish Confirmation Pattern as price has been steadily dropping and lost 430 pips since July 11 (the up-move on August 4 was insignificant compared to the overall bias). Bearish movement should continue this week with the initial target being the demand level at 110.50, followed by the demand level at 110.00 (which was tested last week).
EURJPY
Dominant bias: Neutral
The neutrality continued last week because price was unable to stay above the supply zone at 131.00 - if it had, a bullish signal would have been generated. The weakness seen last week has only put more emphasis on the neutral bias, and with Euro strength preventing bearish moves, there may not be a decent pullback until the Euro suffers exponential weakness.
This forecast is concluded with the quote below:
“Be proud you're a trader. A trader is a man who earns what he gets and does not give or take the undeserved. A trader does not ask to be paid for his failures, nor does he ask to be loved for his flaws. A trader does not squander his body as fodder, or his soul as alms. Just as he does not give his work except in trade for material values, so he does not give the values of his spirit - his love, his friendship, his esteem - except in payment and in trade for human virtue, in payment for his own selfish pleasure, which he receives from men he can respect…” - Ayn Rand
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
St Vincent and the Grenadines
https://www.tallinex.com
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