Managed Forex Accounts for savvy Investors

Weekly Outlook for Week of October 24th – 28th, 2016

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
Last week saw a drop of over 100 pips – over 300 pips since October 10, and resulting in a Bearish Confirmation Pattern. The outlook for EUR pairs is bearish for this week, so slow and steady downward movement is expected – possibly testing the support lines at 1.0850 and 1.0800. Rallies will be opportunities to sell short at better prices.

USDCHF
Dominant bias: Bullish
A decisive siege was laid at the 0.9900 support level (formerly a resistance level) from October 12 to 20. As expected, breaching that level was not easy, but resistance finally collapsed on October 20 – partly due to existing strength in USD. Price was able to close above the 0.9900 support level after testing the resistance level at 0.9950 and retracing, so further bullish movement is possible this week because USD is strong and CHF is not. Other currencies are also likely to rally against CHF, which should provide additional moral support for USD moving higher, though a significant move is unlikely.

GBPUSD
Dominant bias: Bearish
The market managed a shallow rally from Monday to Wednesday, before consolidating into the weekend. As hinted in the last forecast, this week should see more volatility on GBP pairs than last, and bring an end the present consolidation as momentum rises. The outlook for GBP pairs is bullish this week, but rallies are not expected to influence the dominant bearish bias for this market.

USDJPY
Dominant bias: Bullish
Price went sideways last week in the context of an uptrend. The outlook on JPY pairs is bullish this week, so price might be able to rise towards the supply levels at 104.50, 105.00 and 105.50 – a situation that could lead to a strong Bullish Confirmation Pattern in the 4-hour chart. Meanwhile, the supply levels at 103.00 and 102.50 should serve to restrict large pullbacks.

EURJPY
Dominant bias: Bearish
There is a bearish signal on this pair after price fell 170 pips last week. One factor that has contributed greatly to this bearish signal is the weakness of the Euro itself, and the only factor that could invoke a rally is the possibility of weakness in the Yen.

 

Looking for a managed binary account?

Source: tallinex.com