Weekly Trading Forecasts for Major Pairs (November 20 - 24, 2017)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
A bullish signal was generated on this pair last week, as the market gained 200 pips, to test the resistance line at 1.1850. After that, price began to experience some bearish correction, which made it close below the resistance line at 1.1800 on Friday. The bullish signal in the market remains valid, and it cannot be invalidated unless the market goes down by 200 pips from here. This week, the resistance lines at 1.1800, 1.1850 and 1.1900 could be reached.

USDCHF
Dominant bias: Bearish
This pair went downwards from Monday to Wednesday, jumped upwards on Thursday, and then went downwards again on Friday, closing at 0.9883 (on that very day). There is a Bearish Confirmation Pattern in the market, and the support level at 0.9850 may be tested easily, breached to the downside, as price goes further downwards towards other support levels at 0.9800, and 0.9750 (the last target of the week).

GBPUSD
Dominant bias: Neutral
The bias on Cable is essentially neutral, for price has not gone in a strong directional mode in the past 4 weeks. There is a distribution territory at 1.3300 and an accumulation territory at 1.3050 (as space of 250 pips). These distribution and accumulation territories have proven to be able to withstand bearish and bullish pressures in recent times; and as long as price remains within them, the ongoing neutrality would remain. Once either of the territory is breached, a directional bias would occur.
USDJPY
Dominant bias: Bearish
USDJPY went sideways on November 13, and began to come down from November 14. Price went down by 160 pips last week, testing the demand level at 112.00 on November 17 (before the close of the market). This week, it is possible that price would go beneath the demand level at 112.00, and aim for another demand level at 111.50. Nonetheless, there would possibly be a strong bullish reversal before the end of the week.

EURJPY
Dominant bias: Neutral
The fact is, the EURJPY cross has been consolidating since the beginning of October (in the long-term). In the short-term, there are short-term bearish and bullish swings in the market, with no directional bias. For example, price went upwards last week, on Monday and Tuesday; but the bearish movement of Wednesday, Thursday and Friday has rendered the bullish movement of Monday and Tuesday invalid. The current neutrality would continue until price goes upwards by at least, 300 pips; or until it plummets by at least 300 pips. Any pip movement below that would not be sufficient to end the current neutrality.

GBPJPY
Dominant bias: Bearish
This is also a choppy and equilibrium market, for things have gone slightly bearish. The market would need to reach the demand zone at 146.50, for the bearish signal to become stronger in the market. On the other hand, a breach of the supply zone at 150.00 would swiftly bring an end to the bearish bias. A movement to the upside is more likely this week, since the outlook on some JPY pairs is bullish for the week.

This forecast is concluded with the quote below:


“Building a Forex trading strategy is much like building a house. You need layers and a good foundation.” – Jarratt Davis


Source: www.tallinex.com