Weekly Trading Forecasts on Major Pairs (August 4 - 8, 2014)

Share On Facebook
share on Linkedin

Here’s the market outlook for the week:


Dominant bias: Bearish
This pair has been able to continue its southward journey. The price is now going below the resistance line at 1.3400. The resistance line is a war zone between the bulls and the bears, for the price would be making some attempts to breach it to the upside. Should the initial resistance line get broken to the upside, another resistance line at 1.3450 would serve as another hurdle for the bulls. A break above the resistance line at 1.3450 would pose a serious threat to the bearish trend. Meanwhile, the bearish trend may continue, thus pushing the price towards the support lines at 1.3350 and 0.3300.

Dominant bias: Bullish
As it was forecasted last week, the USD/CHF was able to test the resistance level at 0.9100. This is an area where some bulls would like to take their profits, because the price ought to retrace southwards from there. For the bullish journey to continue, the price needs to break that resistance level to the upside, going towards another resistance level at 0.9150. Should the price fail to do this, a near-term or medium-term bearish run would begin.

Dominant bias: Bearish
The Cable dived by about 120 pips this week. The bearish outlook is currently strong, forming a clean Bearish Confirmation Pattern in the chart. The price has a great probability of continuing further downwards, testing the accumulation territories at 1.6850 and 1.6800 respectively. On the other hand, the distribution territories at 1.6950 and 1.7000 should act as impediment to any rallies along the way.

Dominant bias: Bullish
The Greenback is strong; no wonder the USD/JPY rallied, especially in the face of the weakness in the Yen. The market has tested the supply level at 103.00, which must be broken to the upside before the northward movement can continue. Otherwise, there could be some deep pullbacks that might take the price towards the demand levels at 102.50 and 102.00.

Dominant bias: Bullish
The EUR itself is not that strong, but as a result of an exponential weakness in the JPY, the EUR/JPY cross has been able to reject the recent bearish bias on it, paving way for a new bullish signal in the market. As long as the price stays above the demand zone at 137.00, the bullish signal would make sense. The price might even go upwards towards the supply zone at 138.00.

This forecast is concluded with the quote below:

“The markets are, as it were, behavioral economics in action. And that is what you benefit from as a trend follower.” – Michael Covel

Source: Tallinex.com

Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210304 12:30:08