Weekly Trading Forecasts for Major Pairs (June 4 - 8, 2018)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
The pair trended downwards in the first few days of last week, and then started a bullish correction on May 30. Price went upwards by 200 pips in the context of a downtrend, but the movement was not significant enough to override the extant bearishness in the market (except the resistance line at 1.1800 is exceeded). The outlook for EUR pair is strongly bearish for this week and for this month, and so bulls should be careful.

USDCHF
Dominant bias: Bearish
USDCHF has been moving downwards in the past few weeks; which was an unusual thing, considering the fact that it usually goes in a negative correlation with EURUSD. However, the situation will change this week, as USD is expected to begin gathering stamina at some point (before the end of the week). This would aid a strong bullish reversal in USDCHF and put more bearish pressure on EURUSD.


GBPUSD
Dominant bias: Bearish
Cable has been trending southwards for almost two months: Therefore the shallow rally that was seen on Friday is a totally insignificant thing. Price has dropped about 1,100 pips since April 17, and that is just the beginning. The outlook on GBP pairs is mostly bearish for June, and as a result, directional long trades may not make much sense this month. GBPUSD tends to go into positive correlation with EURUSD, and the accumulation territories at 1.3300, 1.3250 and 1.3200 would be reached before the end of the week.

USDJPY
Dominant bias: Bullish
This trading instrument is bullish in the long –term, but bearish in the short-term. Since March 26, a long-term bullish journey started, but short-term bearish effort was also started on May 21. The short-term bearishness is still in place and it is supposed to override the long-term bullish bias on the market. This is because there is a very strong bearish outlook on JPY pairs this month, and so, USDJPY would eventually become like other JPY pairs, which are already bearish.


EURJPY
Dominant bias: Bearish
There is a Bearish Confirmation Pattern in this market, as a result of a vivid weakness that began in the market in April 16. Price has shed roughly 700 pips since then. Last week, the bearish journey continued as price rammed into the demand zone at 125.00, and then bounced upwards (300 pips), without being able to form a confirmed bullish bias. This week, a bearish reversal is expected, because of the weakness in EUR and owing to the bearish outlook on JPY pairs.


GBPJPY
Dominant bias: Bearish
In the first half of last week, this cross dropped and then started rising in the second half of the week. However, the major bias remains bearish and the rally that was seen was an opportunity to sell short dearly. Since GBP is weak and JPY is expected to gain further stamina, a bearish movement of at least 500 pips is expected in the month of June, and that may start before the end of this week.

This forecast is concluded with the quote below:

“You have to study the markets and learn how to take out profits from the market action… You can build up your trading skills through practice and experience and feel good knowing that you have mastered a skill that few have developed.” – Joe Ross

Source: www.tallinex.com