Weekly Trading Forecasts for Major Pairs (May 8 - 12, 2017)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
This pair went sideways from Monday to Wednesday, and then started rising upwards on Thursday, in the context of an uptrend. Price is now very close to the resistance line at 1.1000. This week, it is possible for the market, and other EUR pairs, to open with gaps, owing to the events surrounding French presidential election. Should gaps occur, they would be followed by high volatility and strong movements. While the resistance lines at 1.1000, 1.1050 and 1.1100 could be tested, chances of considerable pullbacks within the next several days are increasing.

USDCHF
Dominant bias: Bearish
USDCHF went lower last week, moving between the resistance level at 0.9950 and the support level at 0.9850. The bias is bearish, and price could go lower as long as EURUSD goes upwards. Eventually, USD would manage to gain some strength, either before the end of the week or at the beginning of next week, which would reverse the movement of USDCHF (as EURUSD is weakened). There must be a movement above the resistance level at 1.0000 in order for the current bearish bias to be threatened.

GBPUSD
Dominant bias: Bullish
In the context of an uptrend, Cable consolidated from the beginning of last week, till Wednesday, and then trended further upwards on Thursday and Friday. Price closed above the accumulation territory at 1.2951, going towards the distribution territory at 1.3000. Once that distribution territory is breached to the upside, other distribution territories at 1.3050 and 1.3100 would become next targets, because the outlook on the market remains bullish for this week.

USDJPY
Dominant bias: Bullish
USDJPY went upwards by more than 140 pips last week. Since April 24, price has gained more than 300 pips, which has resulted in a clean Bullish Confirmation Pattern in the market. The supply level at 113.00 has been tested and it would be re-tested, as price goes above it, targeting another supply level at 113.50 and 114.00. In May, JPY pairs could turn bearish, and that happens, the current bullishness in the market would be gotten rid of.

EURJPY
Dominant bias: Bullish
Last week, this cross moved upwards by 250 pips. Price has gained 500 pips since April 24; plus the supply zone at 124.00 is currently under siege. Once the supply zone is breached to the upside, price would go towards the supply zones at 124.50, 125.00 and 125.50. There would be temporary pullbacks along the way, which should not overturn the current bullish bias, unless the pullback makes price lose at least, 300 pips.

This forecast is concluded with the quote below:

“I trained myself to think of trading as an endeavor in which I strive to make points. Only later are those points translated to dollars. In that sense, for me trading is making point.” – Joe Ross

Source: www.tallinex.com