Weekly Trading Forecasts for Major Pairs (September 24 - 28, 2018)

Posted In: Forex Trading    Posted on: 2018-09-24 21:34:43    Posted By: ituglobal   
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Here’s the market outlook for the week:

 

EURUSD

Dominant bias: Bullish

The current bias on the market is bullish, but the bullishness is not very strong. Price consolidated in the first few trading days of last week, and went higher on Thursday. The outlook on the market remains bullish for this week, and thus, buying pressure may take price towards the resistance lines at 1.1750 (which was previously reached), 1.1800 and 1.1850. There is also a good support line at 1.1650, which should try to prevent any meaningful pullback along the way.

 

USDCHF

Dominant bias: Bearish

The market dropped roughly 100 pips last week, having dropped 400 pips since August 17, 2018. Since there is a Bearish Confirmation Pattern in the market, it is assumed that the price should continue going further and further downwards, reaching the support levels at 0.9550, 0.9500 and 0.9450 within the next few weeks. There could be some transitory rallies along the way, but they should not be significant to the extent of overriding the current bearish market. .

 

GBPUSD

Dominant bias: Bullish  

This long-term and the short-term biases are bullish. Since August 16, 2018, price gained 600 pips, resulting in a confirmed “buy” signal. On September 21, there was a serious pullback in the market, which made price drop 200 pips from the high of that day. The drop was not strong enough to bring about a “sell” signal, unless the market drops at least, another 200 pips. This will determine what the market will do next.

 

USDJPY

Dominant bias: Bullish

About two weeks ago, a clean bullish signal was generated on this currency trading instrument, and the signal has been sustained till now. For about two weeks, price has gone northwards slowly and gradually, gaining about 200 pips. There is much room for price to go northwards: The supply levels at 113.00, 113.50 and 114.00 could be aimed at, although a very strong buying pressure is needed to reach the supply level at 114.00..    

 

EURJPY

Dominant bias: Bullish

Like USDJPY, this cross has been going upwards in the last two weeks (a gain of roughly 500 pips). Since there is a Bullish Confirmation Pattern in the market, further northwards journey is possible, even in spite of the minor bearish retracement that was witnessed last Friday. The supply zones at 135.50, 136.00 and 136.50 could be reached within the next several trading days. They could even be exceeded.

 

GBPJPY

Dominant bias: Bullish

Since a bullish signal was generated on GBPJPY, price has made a significant gain. Nonetheless, there was a pullback on September 21, which cannot be ignored (a pullback of 240 pips). It is normal for price to resume its northward journey from here, giving a good opportunity to go long at lower prices. On the other hand, the market could pull back further, and that may threaten the recent bullish signal.

 

This forecast is concluded with the quote below:

 

“Any one of the many trading strategies available to traders can be used following the principle of matching personal risk tolerance to the amount of risk in the market.” – Joe Ross

 

Source: www.tallinex.com

 

 

 




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