Weekly Trading Forecasts for Major Pairs (August 28 - September 1, 2017)
27 August 2017, 22:51
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSDDominant bias: Bullish
The outlook is neutral in the short term, but bullish in the long term. Price moved sideways from Monday to Thursday before gaining 150 pips on Friday and closing above the support line at 1.1900 - allowing price to test the resistance lines at 1.1950 and 1.2000 this week. The resistance line at 1.2000 will try to impede any bullish movement as the outlook for this pair is bearish this week (although bullish effort may be seen).
USDCHF
Dominant bias: Neutral
The view is bearish in the long term, but neutral in the near term. Apart from the bearish breakout on August 25, last week was a consolidation. Further decline is expected this week (while EURUSD climbs), hopefully enabling price to breach the support lines at 0.9550 and 0.9500 to end the near-term neutrality, but a sharp drop in EURUSD will cause a meaningful rally.
GBPUSD
Dominant bias: Bearish
This month has seen a drop of about 450 pips, which has formed a Bearish Confirmation Pattern. The rally at the end of last week will provide a good opportunity to sell short at slightly higher prices as the outlook is bearish for this week. GBP pairs will be mostly bearish in September (though some rallies will occur).
USDJPY
Dominant bias: Bearish
Last week was an equilibrium phase, so while the overall outlook is bearish, the weakness in USD prevented a meaningful rally. Further decline is anticipated this week with the next targets being the demand levels at 109.00, 108.50 and 108.00. Rallies should either be ignored or approached with caution.
EURJPY
Dominant bias: Bullish
This pair is bullish both long and short term. The up move at the start of last week turned into a strong rally that manifested on Friday with price closing at 130.45. A “buy” signal has been generated, and may support a climb of 200 pips this week. However, the outlook on JPY pairs is bearish this week and for September so price will eventually drop.
GBPJPY
Dominant bias: Bearish
Although July was quite choppy, August has seen a steady decline - losing 700 pips so far. A bullish correction occurred on Thursday and Friday, but was insignificant when compared to the overall bearish bias. Further decline is expected this week with targets of the demand zones at 140.50, 140.00 and 139.50 (possibly even lower).
This forecast is concluded with the quote below:
“Trading is a collaborative endeavour between you and the market. The market offers up opportunities on a regular never ending cycle and you decide what you will do with these opportunities. There is no enemy in this transaction; it is a symbiotic relationship and a failure to accept this is at the root of many of the problems that traders have.” - Chris Tate
Azeez Mustapha
Currency Analyst
Tallinex Limited
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PO Box 362, Kingstown, VC0100
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https://www.tallinex.com
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