analyst75

Here’s the market outlook for the week: EURUSD Dominant bias: Bearish EURUSD went downwards last week, closing below the resistance line at 1.1250. There is a bearish bias on the market, and the support lines at 1.1150 and 1.1100 could be tested. The only thing that can make this happen is continuous stamina in USD as compared to EUR; for the latter would try to gain some stamina this week, against other pairs (please watch EURCAD, EURCHF and EURJPY). Any show of vulnerability in USD might effect a rally in the market. USDCHF Dominant bias: Bullish Based on the expectation last week, this pair was able to continue its northward journey. Price moved north roughly by 160 pips, closing slightly above the support level at 0.9900. There is one threat to the existing bullish outlook – the possibility of a rally in CHF. CHF might rally this week, which would affect CHF pairs, and as such, USDCHF would face some difficulties in journeying further upwards. For the pair to go upwards, USD must showcase more stamina that it has at the present. GBPUSD Dominant bias: Neutral Last week, GBP gained strength versus other currencies as expected, and surprisingly against USD. GBPUSD went upwards by over 300 pips, reached the distribution territory at 1.4650, where the buying pressure was truncated. Further bullish movement would have resulted in a clean Bullish Confirmation Pattern in the market, but as bears performed a check on the bullish movement, price got corrected by 140 pips, thereby forcing the market back into a neutral territory. There would be mixed signals in the market this week, since GBP would be strong versus some currencies, while weak versus some currencies. In case of GBPUSD, further rally is possible. USDJPY Dominant bias: Bullish This market went upward more than 170 pips last week, getting to the supply level at 110.50. There is a Bullish Confirmation Pattern in the market, and price might go further upwards this week, reaching the supply levels at 111.00, 111.50, and 112.00. There are demand levels at 109.00 and 109.50, which should resist bears’ machinations. The bullish outlook would make sense as long as price does not go below those demand levels. EURJPY Dominant bias: Neutral The EUR/JPY simply moved sideways last week, consolidating between the demand zone at 123.00 and the supply zone at 124.00. Possibility of a breakout is very strong this week, as price may assume a serious trending mode. However, when a breakout does occur, it could be in favor of bulls. Price might target the supply levels at 125.00 and 126.00; plus bullish effort would also be witnessed on certain other JPY pairs, like CHFJPY. This forecast is concluded with the quote below: “When a trader sees the market as it really is, rather than what they want to see, the act of trading becomes more relaxed and they become more confident and successful. Does this sound like the type of experience you want trading to be?” – Rebecca Price (Van Tharp Institute) Copyright: Tallinex.com

“Trading can be a matter of probabilities. Sometimes you'll be at the right place at the right time; at other times you won't. That's all right. If you are consumed with perfection and finding the ultimate trading opportunity, you will often miss the trades that are right in front of your nose.” – Joe Ross Developing a Winning Trading Method There are repercussions to be experienced when using a certain approach. You have to think about various market conditions when creating a strategy; otherwise you would end up being frustrated. So what you need to do is to look for proven and time-tested trading setups. You would not only need to create a speculation approach that works in the long run, but you would also need to use it flawlessly in particular market conditions. This is what would let you appreciate the merit of such trading approach. 1. Your method needs to respect the dominant bias. Many veterans of the markets who have developed numerous trading strategies agree that they prefer to pick trades in the direction of the trend. 2. Honestly, it would also be helpful if the method can detect when the dominant bias would be coming to an end or when it would no longer be logical to follow it. This is the real secret behind consistency. 3. Define your entry points which stack the odds in your favor. For example, it is better to buy a pullback in the context of an uptrend or sell a rally in the context of a downtrend. This allows you to set optimal stops and targets. Buying a rally in the context of an uptrend may cause you to get stopped out before the price has the chance of moving in your favor. 4. You must always give yourself an RRR of 1:2 or 1:3. This ensures that you make money with only 40% or less hit rate. Then if your hit rate is 50% or above, how happy you will be! 5. It would be very difficult for you to sustain a huge roll-down on your account if you risk only 0.5% or 1% per trade. This also means that your losses are small and easily recovered. 6. Of course you continue to trades every new setup as long as you are winning. When your losses exceed a predetermined amount, you may stop trading for the day if you are an intraday trader, or stop trading for the week if you are a swing trader, or stop for the month if you are a position trader. This is the best way to avoid continuous losses in a losing streak. By the time you resume trading, it is probable that you would stumble on a winning streak. For example, I stop trading for the month if I go down more than 7%. Conclusion It is normal to become emotional after a losing streak. However, veterans remain calm in a losing streak. They believe in their strategies. They simply know that a winning streak is around the corner, and they remain faithful to their trading rules. This has become their second nature, so easy. This is not easy for noobs who tend to ignore the realities of trading. Market wizards experience losses triumphantly. You too need to use subtle approaches and recognize great trading opportunities. According to Jack Schwager, if you asked most people to categorize good trades and bad trades, you would find the answers to be quite simple… If it makes money it’s a good trade, and if it loses money, it’s a bad trade. That’s not true at all… His quote ends this piece: “Any approach will give you instances of winning or losing. If you have an effective approach, you will hopefully make more money than you lose. If you take a trade that follows your process exactly (whatever that process may be… fundamental, technical or otherwise), and if that trade loses money, that was not a bad trade. It’s only a bad trade if you deviate from your process and lose money. I would go further and say that if you deviate from your process and make money, it’s still a bad trade. People have to differentiate between trades that are consistent with a winning strategy, and trades that are inconsistent. That’s the mark of good and bad trades.” (Source: Thoughteconomics.com) Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bearish This pair simply moved sideways in the first few days of last week – a result of deadlock between bulls and the bears. On May 12, 2016, the bears were pummeled and forced to give way, as price moved south vividly, just as it was mentioned in the last forecast. Further southward movement is anticipated this week, because USD is supposed to gain strength versus a number of major currencies, like AUD, CAD, NZD; with EUR included. USDCHF Dominant bias: Bullish As it was forecasted before, USDCHF managed to go upwards last week, in spite of desperate opposition from bears. The bullish movement last week was not up to 100 pips. Price is now around the resistance level at 0.9750 (below our targets for last week). The targets at 0.9800 and 0.9850 are still valid: Bulls would push the market upwards, plus price could even go beyond those resistance levels. GBPUSD Dominant bias: Neutral GBPUSD was caught in an equilibrium phase throughout last week, save the slight dip that was witnessed on Friday. In the past several days, price has not been able to stay above the distribution territory at 1.4500 or below the accumulation territory at 1.4350. A breakout is imminent this week, which would favor bears because USD could gain some stamina this week. However, GBP would make some gains against other currencies, especially AUD and NZD, since the outlook on them is bearish for this week. USDJPY Dominant bias: Neutral USDJPY moved upwards on Monday and Tuesday, and then consolidated for the rest of last week. Since this pair, just like most other pairs, did not experience strong movement last week, the bias on it has turned neutral in the short-term. However there is a probability of tour de force this week, which could trigger a significant movement on USDJPY, driving it above the supply level at 110.50 or below the demand level at 107.50. EURJPY Dominant bias: Neutral The initial bullish gains that were seen on the first few days of last week were forfeited as a result of a bearish movement that occurred in the last few days of the week. There is a considerable degree of uncertainty surrounding this cross at the moment. But a major determinant of the movement for this week would be conditions affecting Yen, for it to rally or lose strength. Those conditions would also have impact on other JPY pairs. This forecast is concluded with the quote below: “Too often, people fail to differentiate wins that come from the market and wins that come from skill.” - Jack Schwager Source: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Neutral EURUSD went upwards on Monday and Tuesday, topping at 1.1615. Since then, price has come down by over 200 pips, closing at 1.1403 on Friday. It is clear that the gains made by bulls have been erased by bears, but the bias on the market would not really turn bearish until price goes below the support line at 1.1300. That is exactly what is expected this week: The outlook on EUR is bearish and the currency would be weakened against other majors. By the end of this week, there could be a Bearish Confirmation Pattern on EURUSD. USDCHF Dominant bias: Bullish Between Monday and Tuesday, this pair dipped into the support level at 0.9450. From that support level, further dip was rejected as price assumed a clean northwards movement, closing on Friday, above the support level at 0.9700. That was a movement of over 280 pips! This week, the market area to be attacked first would the resistance level at 0.9750, after which bulls would carry their battle towards other resistance levels at 0.9800 and 0.9850. The bullishness on USDCHF ought to have become more conspicuous by the end of this week. GBPUSD Dominant bias: Bullish Here, bulls managed to push price towards the distribution territory at 1.4750 – a juncture at which they were overpowered by bears. Price has come down 320 pips since then, closing below the distribution territory at 1.4450. What next? Since the outlook on USD is bright for this week, GBPUSD might have some difficulties going upwards (although that is not an impossibility). On the other hand, GBP would be strong in its own right, and it may be seen going upwards versus other currencies like EUR, AUD, and NZD. USDJPY Dominant bias: Bearish This currency trading instrument simply consolidated throughout last week, though in the context of a downtrend. The possible direction on USDJPY is ambiguous for this week. We might see bears pushing the pair further southward; whereas it is a probability that could be frustrated by expected stamina in USD. The monthly outlook on JPY pairs is bearish till around the end of the May, when they might rally. EURJPY Dominant bias: Bearish Last week, this cross also behaved almost similarly to USDJPY. There were fleeting upwards and downwards swings on the cross, while the bias remained bearish. This week, we could see further bearish movement on the cross, which might take price below the demand zones at 121.50 and 121.00. Since the current outlook on JPY pairs is bearish and EUR is also expected to be weakened, EURJPY should decline further. This forecast is concluded with the quote below: “I was born in San Juan City, Argentina. It is very close to the Andes Mountains. I have a degree in Business Administration. I've always been interested in trading, but what really forced my hand, and made me absolutely need to become a full-time trader, was a conversation I once had with a professor. When he learned I was experimenting with different automated trading algorithms, he laughed and told me I was a fool to think I could beat the market. Challenge accepted! From that moment, I became a trader!” - Maximiliano Lepez (Source: Collective2.com) Copyright: Tallinex.com

GOLD (XAUUSD) Dominant Bias: Bullish Gold was quite choppy in the first three weeks of April 2016, characterized by short-term upswings and downswings, all in the context of an uptrend. In the last week of April, Gold experienced a sustained trending movement. Price moved upwards by 6500 pips last week alone, breaking one resistance level after another. Last month, price closed at 1292.80, on a strong bullish note. The bullish movement is supposed to continue in this month of May, taking price towards the resistance levels at 1300.00, 1350.00 and 1400.00. Of course there would be transitory dips along the way, but these should be approached as opportunities to go long at better prices. SILVER (XAGUSD) Dominant Bias: Bullish Unlike Gold, which moved unpredictably in the first half of April, Silver moved upwards persistently in April, reaching a low of 14.7550 and a high of 17.9300. This was serious bullish movement of about 3000 pips in April, and there is a strong Bullish Confirmation Pattern in 4-hour and daily charts. Last month, price closed above the support level at 17.7000, and it would go upwards from there, reaching the resistance levels at 18.0000, 18.5000 and 19.0000 within the month of May. Any pullbacks witnessed in this market should be taken as being transient, for bulls would come in to push price higher, forming higher lows and higher highs in the market. Source: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish The EURUSD moved upwards 230 pips last week – an action that has resulted in a Bullish Confirmation Pattern in the 4-hour chart. The resistance line at 1.1450 has been tested and it would be breached to the upside, as price targets other resistance lines at 1.1500 and 1.1550. However, the month of May 2016 would be challenging for bulls because EUR would be weak in some cases. There is an exception of course, like EURAUD, because AUD would be weak against other currencies in May. USDCHF Dominant bias: Bearish This pair merely went in the opposite direction to EURUSD. Price dropped 220 pips and later closed below the resistance level at 0.9600. There is now a bearish outlook on the market and further southwards movement is possible this week, Bears might push the pair towards the support lines at 0.9550 and 0.9500. There cannot be a reversal of this bearish movement unless there is a serious weakness in EURUSD. GBPUSD Dominant bias: Bullish GBPUSD was able to rally gradually last week, reaching the distribution territory at 1.4650. Bulls fought desperately at the distribution territory at 1.4600; only to meet another strong opposition at the distribution territory at 1.4650. Bulls should be able to overcome the opposition at this distribution territory, owing to the bullish outlook on GBPUSD (and most other GBP pairs like GBPAUD and GBPNZD) for the month of May 2016. Price would move up further by 200 pips this week. USDJPY Dominant bias: Bearish This currency trading instrument went sideways from Monday to Wednesday, and then dropped like a stone on Thursday. Price dropped by 500 pips, closing below the supply level at 106.50. There has been a bearish signal in the market, including other JPY pairs. This bearish movement is supposed to continue this week as price action is characterized by lower highs and lower lows. Short-term rallies can be taken as short-selling opportunities. EURJPY Dominant bias: Bearish Just as it was mentioned in the last forecast, EURJPY cross first trudged upwards from April 25 to 27, and then plummeted. The drop was significant enough to overturn the recent bullish gains, causing a Bearish Confirmation Pattern to form in the market. Price has gone below the supply zones at 124.00, 123.00 and 122.00, reaching out for the demand zones beneath them. The outlook on JPY pairs is bearish for the month of May. Therefore, long trades do not make sense here until there is a strong bullish reversal in the market: something that may take place before the end of May. This forecast is concluded with the quote below: "The goal of a successful trader is to make the best trades. Money is secondary." – Dr. Alexander Elder Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bearish This pair was bearish last week. Bulls tried to push price upwards. But as a result of severe opposition from bears, price came down on Friday, following the volatility that occurred on Thursday. There is a “sell” signal in the market, and it may probably go further downwards this week, reaching the support lines at 1.1200 and 1.1150. Price might even go below these targets, and the “sell” signal would never be invalidated until the resistance line at 1.1400 is overcome. USDCHF Dominant bias: Bullish The current bullish movement on this pair started on Wednesday, April 20, 2016. This has led to a Bullish Confirmation Pattern in the market, and it is likely that price would continue its bullish movement this week, reaching the resistance levels at 0.9800 and 0.9850. A movement beyond these resistance levels is even possible: though there is one obstacle in the way of USDCHF, and that is an expected strength in CHF before the end of this week. Please watch CHF pairs. GBPUSD Dominant bias: Bullish As it was mentioned last week, GBP was able to rally against certain majors, which is visible on some crosses like GBPNZD, GBPJPY, GBPCHF, EURGBP, etc. GBPUSD also was bullish last week in spite of desperate struggles of bears against it. From the accumulation territory at 1.4150 the price trended upwards, with some pullbacks on the way, reached the distribution territory at 1.4450, before the market closed on a slight retracement. Price moved upwards by roughly 300 pips last week; plus further northward movement is expected this week. USDJPY Dominant bias: Bullish USDJPY went upwards by 370 pips last week. At the beginning of last week, price gapped down slightly into the demand level at 108.00, and since then a rally started gradually (from Monday to Thursday). That rally gained momentum on Friday, April 22, 2016, and this has resulted in an invalidation of the recent bearish outlook on the market. The bias is now bullish and further northward movement of at least, 150 pips, is expected this week. One thing must be noted: There is also a possibility of a strong bearish movement on USDJPY (and of course, other JPY pairs) before the end of this week. EURJPY Dominant bias: Bullish This currency trading instrument also went bullish last week by 360 pips, after price ran into a solid demand zone at 122.00 at the beginning of last week. On Friday, price closed above the demand zone at 125.00, now very close to the supply zone at 125.50. This has rendered the recent bearish outlook on the market useless. The market would continue moving north this week, since there is now a Bullish Confirmation Pattern in the market, but that does not rule out probability00 of a pullback before the end of this month. This forecast is concluded with the quote below: “Markets are a reflection of rational human behavior — whether 5min or monthly chart. This fractal nature of markets is due to humans’ psychological make-up. Until we evolve into a new species, price action will always be the same.” – Gabriel Grammatidis Copyright: Tallinex.com

“Although I’ve witnessed uncountable demo contests the world over, these are the most impressive results I’ve ever seen, despite the vagaries of the markets.” – Analyst75 Honestly, my plan for this week was to post an article about Alan Howard, a self-made billionaire trader, in our Master Traders series. Nonetheless, I’d to change my mind and post what you’re reading today, as a result of outstanding results of a just concluded demo contest. I don’t like to sound like promoting anyone or any firm, but doubting Thomases need to see this. Perhaps they’d admit that trading success is attainable. A Trading Firm Announces a Demo Contest In early March 2016, I unexpectedly came across this announcement: “Get ready to take part in something new... something different! The starting clock is counting down to the first “(company name withheld)” trading competition of 2016... and the prizes are huge! This is a demo-trading contest because we wanted anyone and everyone to take part... we just decided to make things more interesting by offering bigger prizes than most live-trading competitions. So... if you have ever thought of taking part in a trading competition, then this is the competition to take part in! Competition entrants will go head-to-head - each trading a $2,500 micro account with 1:400 leverage. There are no restrictions - competitors are free to trade any strategy... whether manual, automated, or both. Come early, or come late - you will be able to dive in and join the fun right up until April 15th.” The competition started in March 13, 2016 and ended on the day mentioned in the preceding paragraph. There are no trading/withdrawal restrictions on prize monies. When a Broker Doesn’t Impose Restrictions Let’s be frank here, the kind of broker you use really matters in your trading success. It’s one of the big factors in your profitability as a trader. I hate FIFO rules. I hate restrictions on strategies, like hedging, automation, etc. I like a broker that doesn’t interfere with trading strategies and styles, no matter what they’re. I like brokers that don’t trade against me or manipulate my traders. I like brokers that don’t impose restrictions on me. Let me use any trading styles I like and be responsible for the outcome. Professional traders thrive when they’re uninhibited by unfair restrictions. I saw the most impressive results in my life because a trading firm doesn’t impose any restrictions on traders/competitors. As far as the trading firm which organized the contest is concerned, their demo accounts are almost similar to live accounts. You receive transactions alerts into your inbox as if you were using live accounts. The Number One Contestant – A Mad Trader The contest started, and at the end of the first week, the number one guy had turned 2,500 USD to $63,000 USD. By Thursday of the second week of the contest duration, his equity stood at 106,000 USD. On the following day (Friday), his equity reached 109,000 USD; but he suffered a drawdown that day. His equity dropped to 73,000 USD. I told my boss in the office: “This guy is an exceptionally good trader. Even if the contest ends now, he’s already made an impressive result by turning 2,500 USD to 73,000 USD just in two weeks.” My boss nodded in agreement. In the third week of the contest, the top guy raised his equity from 73,000 USD to 79,000 USD. At the end of the third week, the equity stood at 136,000 USD. In the last week, he raised the equity to 666,000 USD. On April 14, in the afternoon, I showed the result to my boss. The guy’s equity was already 695,000 USD. Three hours later, I was visiting a friend of mine when I checked the contest results, the guy’s equity was then 1,080,000 USD! I called my boss on phone to inform him. He was too surprised. Early on Friday – the day the contest was to finish – the guy’s equity had been turned to 1,350,000 USD. At the end of the contest, his closed balance was 1,433,480 USD. Here is more info about the guy’s results: Contestant name: A.D. Position: 1st Opening balance: 2,500 USD Volume traded: 34,230.80 lots Number of trades: 316 trades Final balance 1,433,480 USD Gains: 57,239.20% Contest duration: 4 weeks Prize money: 5,000 USD The contestant who came second turned 2,500 USD into 741,365 (29,554.60%). The contestant who came third turned 2,500 USD into 713,076 (28,423.04%). All within 4 weeks. I’ll not mention astounding results of many other traders in that contest. Is This Realistic? Another popular broker in Europe just finished their demo contest on April 15, 2016; the duration was like that of demo contest detailed here and the person taking the highest position made only 331.78% profits in 4 weeks (though nearly 2500 people registered for the contest). I can tell you that 331.78% in 4 weeks is an impressive return. But who can argue with 57,239.20% in 4 weeks? It means you could’ve gained at least 57,200 USD in 4 weeks if you invested only 100 USD and got that kind of results in terms of percentage! Is this realistic? Yes and No. Yes, because the results are true, and because the trading firm involved allows trading conditions on virtual accounts to be exactly similar to those of live accounts. No, because contestants used excessive leveraging, which might be too pernicious when trading on real accounts. But I also believe that they would’ve made impressively decent profits even when they risked 1% per trade, using risk control features, and compounding their accounts for one year. As a professional trader myself, I personally witnessed the vagaries of the markets during the whole contest duration. I witnessed fake-outs, strong trending movements, short-squeezes, false breakouts, reversals, traps, equilibrium phases, random volatility etc. Regardless of these random and unpredictable behavior of the markets, those awesome traders made astounding profits. Who Is That Mad Genius? As I said earlier, I’m not advertising anything here. I don’t know the mad genius in person, but I’m a witness to his gargantuan results. I just wanted readers to know that there are talented traders on this planet. I suspect those traders used automated or semi-automated strategies. The firm that organized the contest might try to interview the top trader or the top three or the top five. I don’t know whether this would be done, but I can guarantee you that if the top trader (that mad guy) is interviewed, the interview would be included in one of my future articles; the Master Traders series. Conclusion: There are many, many traders who can speculate successfully. If you’re one of those doubting Thomases who think success is impossible in the markets, this article was written to prove you wrong. Can you now see that, while there are losing traders, there are also hugely successful traders? Do you want to be like them? You can be like them if you really want to! To be candid, I’d no intention of using any link to prove my point, owing to the fact that I don’t want to appear like promoting anything. On the other side, if I don’t show any links, readers who easily come in and say: “You know that blogger/forumer is a smart liar.” I don’t want to claim something that got no proof. It’s sad that many readers wouldn’t believe me if I didn’t make any reference. Nevertheless, if you were curious enough, you might want to see the proof. Then send your request to: Tallinex.com/leaderboard As from next week, I’ll resume posting my usual articles. This article is ended with the quote below: “People lose money for various reasons, mostly they are not ready to compete against the best, it is like a five year old playing basketball against a seven footer, people think it is a even playing field, it is not, MOST are BAIT and the few are WHALES, Whale doesn't have to attack any of the bait, whale just opens his mouth and swims. Some of the brightest people come to the markets thinking their brain will overcome experience, I certainly can't bend microwaves, but I know the probabilities of swing distance of ES in first hour of ES. And there are differences when it comes to bending microwaves, YOU are working for someone and I work for myself.” – Handle123 (Source: Elitetrader.com) Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Neutral EURUSD traded lower last week, testing the support line at 1.1250, to close at 1.1282 on Friday. The movement of the price has essentially been sideways since the beginning of April and there is no significant directional journey till now. However, there is a possibility that bulls would effect a rally this week, which might enable price to reach the resistance lines at 1.1350, 1.1400 and 1.1450. In addition, EUR pairs could be seen strengthening against other majors. USDCHF Dominant bias: Bearish This pair moved upwards last week, in the context of a downtrend. Price tested the support level at 0.9500 and later rose above the support level 0.9650, which means the downtrend is currently being threatened. A movement above the resistance level at 0.9750 would mean the end of the downtrend, but that would probably not happen. The outlook on USD for this week is bearish, and as such, further southward movement could be witnessed before the end of the week, which could cause price to reach the support levels at 0.9600, 0.9550 and 0.9500. This could cause the existing downtrend to be strengthened eventually. GBPUSD Dominant bias: Neutral The GBPUSD was volatile throughout last week, with neither bulls nor bears having upper hands. There should be a directional movement this week, which would most probably be in favor of bulls. This means the market could rally this week, reaching the distribution territories at 1.4300, 1.4350 and 1.4400. The accumulation territories at 1.4100 and 1.4050 may do a good job in thwarting bearish attempts this week. Some GBP pairs might also rally, like GBPCAD. USDJPY Dominant bias: Bearish From April 11 to 14, this currency trading instrument trended upwards by 190 pips. On April 15, price got corrected lower, in conjunction with the existing bearish bias. This means the rally that was seen between April 11 and 14 was a mere short-term rally in the context of a downtrend. Further bearish movement is expected this week, which might make price go down by at least 150 pips. Any rallies seen this week should be taken as short-selling opportunities. EURJPY Dominant bias: Bearish This cross, which dropped steeply in the first week of this month, was caught in an equilibrium phase last week. Price would go out of the equilibrium phase this week, and most likely go further southward, owing to the Bearish Confirmation Pattern in the market. Price closed below the supply zone at 123.00 on Friday. In case price breaks out to the south, the demand zones at 122.00 and 121.50 might be tested. There cannot be a threat to the current Bearish Confirmation Pattern unless the supply zone at 126.00 is overcome. This forecast is concluded with the quote below: “Support and resistance levels are generally more porous in volatile markets. Common sense suggests that, in these conditions, you should give the trade more room.” - Lee Bohl Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish In the context of a downtrend, EURUSD consolidated throughout last week. One big formidable barrier to further northward journey is the resistance line 1.1400 (though the resistance line at 1.1450 was also tested). Bulls were unable to breach the resistance line at 1.1400 to the upside in spite of many forays into it. This week would be decisive for the pair. First, a breakout to the upside or the downside would happen. It would most probably be to the downside, should bulls fail to push price above the aforementioned resistance line. In case, price goes above the resistance line and remain above it, it would spell a defeat for bears. USDCHF Dominant bias: Bearish This pair experienced a flat movement last week, not reaching, nor going below the support level at 0.9500 in spite of the fact that the bias is bearish. By the indication in the chart, the market would most likely go further south this week, which would be corroborated by the ability of USDCHF to go below the support level at 0.9500. In case the pair fails to achieve this, a considerable rally would be witnessed. GBPUSD Dominant bias: Bearish Cable was very volatile last week – reaching a high of 1.4319 and a low of 1.4004. The overall sentiment is negative, but bulls are not keeping their fingers crossed in this situation, for they are making attempts to effect a rally. One thing should be noted: The possibility of GBP gaining stamina is very high this week. GBP might be seen strengthening versus other major pairs; an event that could start this week. Therefore, the current bearish bias on the market might be challenged and eventually invalidated. USDJPY Dominant bias: Bearish Since March 29, 2016, USDJPY has dropped by nearly 600 pips. Last week alone, price dropped by at least, 350 pips. This has caused a strong Bearish Confirmation Pattern in the market. After all, it had been forecasted that that JPY pairs might become weak before the end of this month, and the weakness started earlier than anticipated. On USDJPY, bears are still determined to reach the demand levels at 107.50, 107.00 and 106.50. EURJPY Dominant bias: Bearish This cross dropped 450 pips last week alone, almost testing the demand zone at 122.50. The shallow northward effort that was witnessed around the end of the weak is cleanly negligible, for price is expected to continue its southwards journey this week, reaching the support zones at 122.50, 122.00 and 121.50. Long trades do not look rational in the market, unless there is a clear sign of Yen easing. This forecast is concluded with the quote below: “When you take action, and make enough trades, the odds may work in your favor, and you'll end up with profits. So as you trade, take an action-oriented approach. As Mark Douglas suggests in "Trading in the Zone," the more you find excuses to avoid making trades, the less likely you'll be at actually taking home profits. But if you look for an edge, and use this edge to make numerous trades, you'll increase your chances of success. In trading, there are proven strategies that work under specific market conditions. If you look hard enough, you'll find them, and use them to your advantage.” – Joe Ross (Source: Tradingeducators.com) Copyright: Tallinex.com

GOLD (XAUUSD) Dominant Bias: Bullish On the daily chart, Gold is in an uptrend; whereas a lower timeframe like the 4-hour chart shows that there is bearish pressure on the market. In the context of an uptrend, price was engaged in a bearish correction throughout the month of March, causing price to reach a monthly low of 1208.18. Attempted rallies were often followed by pullbacks, as evident in lower highs and lower lows in the market. Things could turn bearish, in case price goes below the demand level at 1170.00 (which would require a significant selling pressure). Should price fail to drop below the demand level at 1170.00, a protracted rally may start, in conjunction with the recent bullish outlook. SILVER (XAGUSD) Dominant Bias: Bullish Just like its Gold counterpart, Silver is bullish on the daily chart and bearish on the 4-hour chart. This is a very volatile market, which means that the current volatility should be taken into consideration, since it could continue for the next several days. In the last month, price reached a high of 16.1100; but the bullish effort is often frustrated by the bearish machination (stronger dips). It is logical to assume that whatever happens to Gold would rub off on Sliver. Should the former go south as mentioned earlier, the latter would test the demand zone at 14.4000, thereby frustrating the current Bullish Confirmation Pattern in the market. A rally on Gold would also help Silver to assume a considerable amount of bullishness. Source: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish EURUSD moved upwards by 250 pips last week, testing the resistance line at 1.1400. That resistance line has proven to be an obstacle to bulls because price was unable to close above it last week (in spite of forays into it). Price might be able to go above the resistance line eventually, but it might not be able to go far north. There is a possibility that this pair would experience a large pullback this week, which might enable it to reach the support lines at 1.1300 and 1.1250. USDCHF Dominant bias: Bearish This currency trading instrument went down 200 pips last week, closing below the resistance level at 0.9600. The support levels at 0.9550 and 0.9500 could be breached this week. However, there might be a rally – which would be significant enough to threaten the current bearish bias. In case price moves above the resistance level at 0.9850, it would result in a clean Bullish Confirmation Pattern. GBPUSD Dominant bias: Bearish From Monday to Wednesday, Cable went upwards by 330 pips, reaching the distribution territory at 1.4450. Bears effected further movement at that territory, causing the market to experience a bearish correction of 250 pips. The ongoing bearish correction might make price further downwards by 100 – 200 pips, but there would soon be an exponential rally in the market, which would eventually render the current bearish outlook invalid. The outlook on GBP is bright for the month of April, and as a result of this, we would see GBP gaining strength versus other major currencies. Wild fluctuations with other major currencies like AUD and NZD would be witnessed. USDJPY Dominant bias: Bearish There is a currently a “sell” signal in this market, owing to a Bearish Confirmation Pattern in it. Price closed below the supply level at 112.00, going towards the demand levels at 111.50 and 111.00. Long trades do not make sense in this market, until there is a clean indication of bulls’ hegemony, which would only be brought about by serious weakness in Yen. The movement for this month would mostly be bearish. EURJPY Dominant bias: Bullish Bulls were able to push this popular cross to the upside until it reached the supply zone at 128.00. There has been a shallow pullback around that zone, causing the cross to close at 127.24 on April 1, 2016. Further bullish movement is possible this week, though there could be another bearish run before the end of the month. JPY pairs are expected to continue moving upwards this week (and perhaps, next week), but they would begin to go south before the end of the month. This forecast is concluded with the quote below: “Most traders… will tell you their success came from finding the approach that best suits them and pushing through it to get better and better.” – Elitetrader Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish As expected, this pair got corrected lower last week, moving downward by 120 pips before closing while consolidating. The support line at 1.1150 has been tested and it would be breached to the downside this week. EUR would be seen weakening against major currencies before the end of this month, except in the case of EURJPY (making the bias on the market go bearish). Therefore, the support lines at 1.1100, 1.1050 and 1.1000 are vulnerable this week and next. USDCHF Dominant bias: Bearish USDCHF moved higher by 100 pips last week, closing above the support level at 0.9750. It might be possible for USDCHF to go upwards this week, because further bearish movement on EURUSD could help it to rally. In addition, CHF itself has a probability of becoming weak soon (CHF could be weak versus other majors, save CHFJPY). Thus the resistance levels at 0.9800, 0.9850 and 0.9900 could be attained this week or next. GBPUSD Dominant bias: Bearish This currency trading instrument went south by roughly 400 pips last week, almost reaching the accumulation territory at 1.4050. Although there is a Bearish Confirmation Pattern in the market, bulls would be seen trying to push up the price this week, with a measure of success. There is an accumulation territory at 1.4000, which would try to hinder further bearish journey. When price turns and goes upwards, the distribution territories at 1.4200, 1.4250 and 1.4300 could be attained this week or next. USDJPY Dominant bias: Bearish USDJPY was seen making bullish effort throughout last week. However, the bullish effort was not significant enough to bring about a change in the dominant bias. It is expected that the pair would continue moving upwards this week, owing to a bullish expectation on JPY pairs. USDJPY would move upwards by a minimum of 100 pips during the week, causing a bullish bias to form in the market. EURJPY Dominant bias: Neutral This cross consolidated throughout last week, neither going below the demand zone at 125.00 nor going above the supply zone at 126.50. A breakout is imminent this week, which would most possibly favor bulls. A closer look at the market shows that the bulls are still determined to effect a rally here, which could make price to reach the supply zones at 127.00 and 127.50. This forecast is concluded with the quote below: “It's useful to remember that you may not win on any single trade, but after a series of trades you will have enough winners to make a profit in the long run.” - Andy Jordan Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish From Monday till Wednesday, this pair moved south. Price broke upwards on Wednesday as it rose significantly by 280 pips that day and on Thursday. On Friday, price got corrected lower a bit, closing at 1.1269. However, the outlook on EUR is bearish for this week, and bulls would experience serious difficulties in pushing price further upwards. This weakness could also be witnessed on other EUR pair like EURCAD and EURNZD. USDCHF Dominant bias: Bearish Last week, USDCHF took a serious battering as prognosticated, given what also happened to USDCAD, EURUSD, GBPUSD, NZDUSD, AUDUSD, etc. After consolidating from Monday to Wednesday, price dropped like a stone on Wednesday and Thursday, testing the support level at 0.9650. While further southward moved is not ruled out, the situation could change this week, especially in the case of EURUSD, for USDCHF might rally considerably when EURUSD trends downwards seriously. GBPUSD Dominant bias: Bullish Cable was subjected to strong movements last week. From Monday to Wednesday, price dipped by 320 pips, later to rise on the same day. Within Wednesday and Thursday, price went upwards 440 pips. But bulls have met a stubborn opposition at the distribution territory of 1.4500; they could not push the price beyond that accumulation territory. Should bulls succeed in pushing price beyond 1.4500, the next targets would be the distribution territories at 1.4550 and 1.4600. There are also probabilities of pullbacks along the way. USDJPY Dominant bias: Bearish USDJPY, which was quite choppy in the last few weeks, gave in to gravity last week. Price dropped by 300 pips, ramming into the demand level at 111.00. Although there is a clean Bearing Confirmation Pattern in the market, price could rally this week. After all, price has been unable to close below the demand level at 110.00 as it bounced off that level. JPY pairs are expected to rally this week, and USDJPY may not be an exception. So it is rational to assume that the bearish journey that occurred last week simply paved way for the bullish journey that could occur this week. EURJPY Dominant bias: Bullish This cross consolidated throughout last week, not moving significantly upwards or downwards. This bullish outlook is still somewhat valid despite the ongoing consolidation, though a breakout is imminent this week. When a breakout occurs, it would most probably favor bulls, because the outlook on JPY pairs is bullish for this week. Traders are advised not to trade against JPY pairs this week. This forecast is concluded with the quote below: “We hope your January through February proves to be profitable. After one more month, March, you can evaluate your quarterly trades to make adjustments. If adjustments are necessary, make sure that they align with your trading plans.” – Tradingeducators Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish This pair consolidated from Monday to Wednesday, breaking out northward on Thursday (March 10, 2016). On that day, price first spiked downwards and then rallied significantly, testing the resistance line at 1.1200. There is a Bullish Confirmation Pattern in the market and it is possible that the price would continue going northwards this week, going above the resistance line at 1.1200, and testing another resistance lines at 1.1250 and 1.1300. USDCHF Dominant bias: Bearish USDCHF was merely consolidating between the support level at 0.9900 and the resistance level at 1.0000. On Thursday, the market performed a false breakout above the resistance level at 1.0000 and later trended strongly downwards. This has led to a “sell” signal in the market, which might continue this week. USD will be facing challenges from some major pairs, like EUR and GBP (even NZD will rally this week, for it would be strong versus other currencies). So USD is in for a serious battering this week. GBPUSD Dominant bias: Bullish As it was mentioned last week, this currency trading instrument rallied, testing the distribution territory at 1.4400 and closing at 1.4383 on Friday. Price is supposed to continue going upwards this week, targeting the distribution territories at 1.4450 and 1.4500. Price might even move beyond these distribution territories, but not without attacks from bears, who would show enough desperation in dragging price south. USDJPY Dominant bias: Neutral USDJPY went through a turbulent phase within March 7 and 11, with no clear victory between bull and bear. On Monday and Tuesday, price moved downwards. On Wednesday, it moved upwards, while Thursday was full of morbid threats from bears. Bulls dared the bears’ threats on Friday, managing to push price upwards slightly on Friday. What will happen next? The current price action shows that price could continue moving upwards from here, although persistent weakness in USD could cause the anticipated bullish movement to be somewhat limited. EURJPY Dominant bias: Bullish This cross consolidated on Monday, moved downwards on Tuesday and began to rally Wednesday. In fact, the rally that happened on Wednesday took the cross upwards by over 400 pips, as its price tested the supply zone at 127.00. Bulls are still showing willingness to push the cross further north; plus there is a bullish signal in the market. The potential targets for the week are located at 127.50 and 128.00. This forecast is concluded with the quote below: “Effective traders are willing to get out of their comfort zones and try new things. I know it might be scary to go into the unknown, but to have more in life, you must take smart risks.” – Louise Bedford Copyrigght: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bearish As it was mentioned in the last forecast, EURUSD has been making some bullish attempt, which, however, has not been significant enough to render the recent bearish bias invalid. Bears pushed price downwards, but met a stiff rejection at the support line of 1.0850. Price then moved sideways and later broke upwards on Thursday, trending upwards by at least 160 pips. Since it is expected that the bullish attempt would continue this week, price could reach the resistance lines at 1.1050 and 1.1100 in the week. USDCHF Dominant bias: Neutral USDCHF merely moved sideways throughout last week, with no directional journey to the upside or to the downside. The sideways movement was generally between the support level at 0.9900 and the resistance level at 1.0000. Nevertheless, there is going to be a breakout this week, which would most probably favor sellers, because this pair would continue to be influenced by gravity as long as EURUSD is making bullish attempt. The support level at 0.9800 could thus be tested this week. GBPUSD Dominant bias: Bullish The bias on Cable is now bullish. Throughout last week, Cable made a perpetual journey to the north, going upwards by 400 pips and almost testing the distribution territory at 1.4250 (after price started going upward from the accumulation territory at 1.3850 on Monday). There is a Bullish Confirmation Pattern in the market and it is much more likely that Cable would go upwards by at least, additional 200 pips this week. USDJPY Dominant bias: Neutral Unlike most other JPY pairs, which traded upwards last week, USDJPY simply moved sideways. This is because USD is not strong enough to take advantage of the weak JPY (as other pairs like AUDJPY and NZDJPY have done). In fact, we can see that USD is weak versus other major pairs (like AUDUSD, NZDUSD, GBPUSD, etc.). This week, there is a probability that USDJPY would continue moving sideways or even consolidate to the downside, for there may not be a significant rally here as long as USD is weak. EURJPY Dominant bias: Bearish This cross traded downwards on Monday, going briefly below the demand zone at 122.50 on Tuesday and then starting a bullish journey on the same day (March 1, 2016), which saw a gain of almost 450 pips at the end of that week. The supply zone at 125.50 has already been tested and it would be breached to the upside as bullish continues to push price upwards. The supply levels at 126.00 and 126.50 are potential targets for bulls this week. This forecast is concluded with the quote below: “How about your trading? What reward/risk ratio do you think is acceptable on your trades? Do you have a defined targeted ratio before you enter a position and an acceptable effective ratio resulting from your trades? Do you manage your current reward risk ratio on open positions? Developing a strong and deeper understanding of your reward to risk management can be a great edge and a path to trading mastery.” - Sam Eder (Source: Vantharp.com) Copyright: Tallinex.com

GOLD (XAUUSD) Dominant Bias: Bullish Gold has been going upwards since the beginning of this year, with first 7 trading days in February being quite significant as far as the bullish journey was concerned. Price topped at 1263.13 on February 11, 2016. On the daily chart, a Golden Cross had already taken place in early February; and from the middle of that month till the end, price was very volatile as bears battled bulls for a change in the trend. However, bulls have been able to keep the “buy” signal intact as bearish corrections offered opportunities to join the bullish trend. This bullish bias would be valid as long as price does not cross the EMA 200 to the downside on the daily chart. The Bullish Confirmation Pattern in the chart remains intact: Price could test the supply levels at 1270.00, 1290.00 and 1310.00 within March and April 2016. SILVER (XAGUSD) Dominant Bias: Bullish Silver traded sideways in January and broke northward in February, for Gold acted as a catalyst that brought about a serious northward movement on it (as it was mentioned in the last monthly technical review on Silver). Silver reached a high of 15.9150 on February 11 and began to consolidate to the downside after that. Further consolidation for another 10 trading days could force the market to enter a neutral phase in the medium term, while a movement below the demand zone at 14.0000 might lead to a bearish signal. However, there could be a resumption of the bullish trend, especially if Gold holds out its bullishness for the next several trading days. Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bearish EURUSD traded lower on Monday, and then moved sideways until Friday, when it traded further southward, closing at 1.0931. Altogether, price moved downwards close to 200 pips, while the outlook on the market is bearish. There are support lines at 1.0900 and 1.0850, which would attempt to challenge more bearish movement. This week, EURUSD may be seen making attempts to rally, which might become serious in case bulls are determined enough. In fact, all major pairs would been seen making short-term significant swings in the month of March. USDCHF Dominant bias: Neutral This pair merely traded sideways last week, meandering its way between the support level at 0.9850 and the resistance level at 1.0000. There is going to be a break above that resistance level or below that support level this week, although a break below the support level is more likely, because the resistance level at 1.0000 is a great barrier and because EURUSD could be seen making some bullish attempt this week. Whatever happens this week should put an end to the current neutral bias on the market. GBPUSD Dominant bias: Bearish GBPUSD dropped over 430 pips last week, almost testing the accumulation territory at 1.3850. Further bearish movement is possible this week and next week: Upwards bounces should be taken as short-selling opportunities. Just as it was predicted at the beginning of February 2016, GBP pairs are trending significantly downwards and they would remain under bearish pressure. However, around the end of March, GBP pairs would start rallying significantly. USDJPY Dominant bias: Bearish In the middle of last week, this currency trading instrument started a bullish correction that has actually become a threat to the recent bearish outlook on the market. This trading instrument should continue going further upwards this week, until the recent bearish outlook is rendered completely invalid. On timeframes lower than the 4-hour chart, there are already bullish signals. The bullish correction is also visible on other JPY pairs, which would most probably be seen making commendable bullish efforts this week and next. The outlook on JPY pairs is bright for the month of March. EURJPY Dominant bias: Bearish EUR/JPY cross moved lower last week, reaching the demand zone at 122.50 on Wednesday, February 24, 2016. Since then, price has gone up more than 200 pips – a sort of bullish correction that is also visible on other JPY pairs. Further northward movement of 250 pips would lead to a Bullish Confirmation Pattern in the market; otherwise price could test the demand zone at 122.50 again, owing to bearish reprisals (though it is unlikely that price would go below that demand zone). This forecast is concluded with the quote below: “I love the lifestyle of being a trader. I get to run my own business and set my own schedule. They say you should do what you love, and this is exactly what I love. What is there not to love? I wake up, take a few trades during the day, and I'm done! I can move on and enjoy the rest of my day. The best part of this life for me is that it allows me more time to spend with my children. I would not have this flexibility if I worked an 80-hour week in corporate America.” - Richard Mazur (Source: Collective2) Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish This pair went slightly downwards on Monday and moved sideways for the rest of the week. A closer look at the chart revealed a consolidation to the downside, which threatens the recent bullish bias. For the bias not to turn bearish, bulls must prevent bears from pushing price below the support line at 1.1000. In case bulls succeed in doing this, we may see the price going upwards this week, thereby ending the threat to the recent bullish bias. USDCHF Dominant bias: Bearish USDCHF went up 170 pips last week, but it met a strong opposition at the resistance level of 0.9950. Price was unable to go above that resistance level in spite of several attempts to breach it. This week, the movement of USDCHF would be largely determined by whatever happens to EURUSD. USDCHF may experience great difficulty in breaking the resistance level at 1.0000 to the upside (an event that could end the current bearish bias in the market). Failure to do this could reinforce the bearish bias, which is currently under threat from bulls. GBPUSD Dominant bias: Neutral From the high of Monday, Cable dropped by 280 pips, reaching the accumulation territory at 1.4250 on Wednesday, February 17, 2016. The accumulation territory at 1.4250 has proven to be a recalcitrant barrier to bears, for the price could not go below it in spite of forays into it, and this has forced Cable into a neutral phase. The market ended on Friday with a strong upward bounce, which might be a short selling opportunity unless the distribution territories at 1.4550 and 1.4600 are overcome. USDJPY Dominant bias: Bearish This market rallied 120 pips on Monday – resulting in a better entry price for sellers. From the high of Tuesday (114.87), price dropped by 240 pips, to close at 112.64 on Friday. There is a clean Bearish Confirmation Pattern in the market, which indicates the possibility of price going further south, reaching the demand levels at 111.50 and 111.00. The chances of JPY pairs rallying significantly this month are now slim. EURJPY Dominant bias: Bearish In the context of a downtrend, EURJPY cross went upwards on Monday and started coming down from the high of Tuesday. From Tuesday, price came down gradually by 300 pips, reaching the demand zone at 125.00 on Friday. There is an ongoing bearish signal on this cross, which may enable it to move further southward by at least, 200 pips this week, reaching the demand zones at 124.50 and 123.50. Only a sudden weakness in the Yen would cause this cross to skyrocket. This forecast is concluded with the quote below: “As you fully understand “your trading game” and know how the markets are functioning, you greatly increase your probability of success. Most of all, you will have “fun” trading — independent of winning or losing. If you do not enjoy yourself trading, then you are probably not trading the right systems – ones that fit you.” - Gabriel Grammatidis Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish EURUSD moved upwards by 230 pips last week, topping at the resistance line of 1.1350, before the current bearish correction. From that resistance line, price got corrected by 100 pips while the bias on the market remains bullish. There is a need for price to go above that resistance line this week, aiming for other resistance lines at 1.1400 and 1.1450. Otherwise, bears might overcome bulls and manage to push price further south. USDCHF Dominant bias: Bearish This pair has proven to be one of the strongest trending among the majors. Price dropped by roughly 260 pips last week, moving briefly below the support level at 0.9700. Then price turned upwards, making a shallow bullish effort. The bullish effort cannot render the current bearish bias invalid unless price goes above the resistance levels at 0.9900 and 1.0000, which is not an easy task, given the ongoing bearish sentiment in the market. USDCHF is suffering from all-round attacks, for EURUSD is up, causing USDCHF to remain under pressure, and CHF itself is strong (see CHF pairs). Eventually, the shallow bullish effort in the market might turn out to be another shallow short-selling opportunity. GBPUSD Dominant bias: Bullish Cable merely consolidated throughout last week, in the context of a medium-term uptrend. The presence of bulls is still visible in the market, though it is possible for them to be subdued by bears any time. A movement above the distribution territories at 1.4600 and 1.4650 would reinforce the current bullish effort, while a movement below the accumulation territories at 1.4350 and 1.4300 would invalidate it. USDJPY Dominant bias: Bearish The price has gone down by 600 pips this week, and it has gone down by 1000 pips since January 29, 2016. The demand level at 111.50 was tried before the upward bounce that happened on Friday, February 12, 2016. The upward bounce is another opportunity to go short while the bearish trend lasts. The bias on JPY pairs is currently bearish, although that does not rule out the possibility of them rallying before the end of this month. . EURJPY Dominant bias: Bearish This cross experienced a large pullback last week, going down by 450 pips and reaching the demand zone at 126.00. Thus time around the stamina in EUR has been unable to cause it to withstand the assault from JPY (as it is true of some other EUR pairs). It is logical to assume further southerly movement in the market, due to a strong Bearish Confirmation Pattern in the market. Along the way, upward bounces might be ignored as long as it is clear that bears are in control. This forecast is concluded with the quote below: “Almost all of my trading is mechanical — 100% based on rules I have tested and found to be valid. I tend to ignore news of the day, fundamental information and adverse “big picture” scenarios because these do not impact my systems greatly. Sometimes, these factors affect my results in the short term, but over the long term, the systems have a positive expectancy.” - Kevin J. Davey Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bullish This pair was engaged in a smooth bullish run last week, moving upwards 420 pips before the bearish retracement that was seen on Friday (February 5, 2016). The bearish retracement could be taken as a sale in the context of an uptrend, for the uptrend might continue this week. As long as price is above the support line at 1.0950, the bullish bias cannot be threatened. The resistance lines at 1.1250 and 1.1300 are the potential targets for bulls this week. USDCHF Dominant bias: Bearish Owing to the perceived weakness in USD, USDCHF dropped 340 pips last week, ending the recent bullish outlook on the market. The support level at 0.9900 was tried, before the current upward bounce, which is, however, shallow. That support level at 0.9900 could be retried again and get breached to the downside, as price possibly attains the support levels at 0.9850 and 0.9800 this week. It must be noted that the market is now below the psychological level at 1.0000; so it might be difficult for bulls to effect any bullish changes that would take the price above that level. In case the psychological level at 1.0000 is broken to the upside, then a rally that would eventually threaten the bearish bias might begin. GBPUSD Dominant bias: Bullish From the low of January 29, 2016, Cable rose steeply, testing the distribution territory at 1.4650 on Thursday, February 4, 2016. From that distribution territory, price has come down by 200 pips, on the following day. That correction is a proof of the vulnerability of the ongoing strength in Sterling, for the outlook on GBP pairs remains bearish for this month. While GBP is strong versus USD, it is weak against certain other currencies, for instance, GBPJPY, GBPCHF, EURGBP, etc. The market might resume a rally this week, albeit further bearish correction of another 200 pips would put an end to the current bullish outlook. USDJPY Dominant bias: Bearish The sudden and unexpected weakness of this currency trading instrument was partly due to the weakness of USD. On January 29, 2016, price touched the supply level at 121.50 and dropped 500 pips in the following week, which has resulted in an undisputed Bearish Confirmation Pattern in the market. Long trades are not currently logical until there is a clear indication that bulls have taken control again. Right now, bears are the ones in control. EURJPY Dominant bias: Bullish Unlike other JPY pairs (e.g. NZDJPY, AUDJPY, etc.), EURJPY did not come down significantly because of the strength in EUR itself. Last week, price came down only by 160 pips – a movement that was not strong enough to invalidate the bullish bias on the market. Only a movement below the demand zone at 128.50 would put an end to the extant bullish bias, as price is expected to rally this week or next. It would be mentioned that JPY pairs still have the possibility of rallying this month. This forecast is concluded with the quote below: “As I have matured as a trader I have become better at dealing with the emotions that come with trading. That has come simply from exposure, self-awareness and time.” – Rachel Shasha Copyright: Tallinex.com

GOLD (XAUUSD) Dominant Bias: Bearish Gold started a persistent bullish journey a few weeks ago, and this is strong enough to threaten the current bearish bias on the market. Should the bullish journey persist for the next few days, that would lead to a new clean “buy” signal, leading to a Bullish Confirmation Pattern in the market. There are possibilities of pullbacks this month, but as soon as price goes above the resistance level at 1155.00, then bearish positions would no longer make sense. There are support levels at 1110.50 and 1080.50, which might prevent possible pullbacks from being significant. SILVER (XAGUSD) Dominant Bias: Bearish Unlike Gold, Silver has not assumed a noteworthy rally. Instead, price has been consolidating within the last few weeks, and there is nothing to pose a threat to the extant bearish outlook on the market. On Silver, there is bound to be a rise in momentum this month, which might take place this week or next. Price might drop heavily or rise sharply. However, a significant rally would be more likely in case Gold continues its journey upwards. That means a bullish Gold might act as a catalyst for bullish Silver, since both are positively correlated in most cases. Should Gold experience a serious pullback, then Silver would fall further south. On the downside, price could test the support levels at 13.6100 and 14.0000. On the upside, bulls might push the price towards the resistance levels at 15.1000 and 15.5000. Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Neutral This pair went up from the support line at 1.0800, reaching the resistance line at 1.0950. From that resistance line, price went down 120 pips. There is a neutral bias on this pair, which would remain in force until price goes below the support line at 1.0800 or above the resistance line at 1.0950. For a few weeks, that resistance line at 1.0950 has been refusing bullish movement above it, and therefore it is more likely that price would go further downwards this week, breaking below the support line at 1.0800, owing to a bearish outlook on EUR pairs for this week and for most of February 2016. USDCHF Dominant bias: Bullish Last week, USDCHF moved sideways from Monday to Thursday, in the context of an uptrend, but broke upwards on Friday, reinforcing the existing uptrend. The resistance level at 1.0250 has already been tried, and there is a high possibility that price would go above that resistance level, targeting another resistance levels at 1.0300 and 1.0350. This would be easier especially in the wake of a weaker EURUSD. GBPUSD Dominant bias: Bearish As it is always mentioned, long trades will usually be traps on GBPUSD until it is clearly confirmed that the bearish bias is completely over. Bulls made commendable effort to effect a rally last week – all of which proved futile with what happened on Friday, January 29, 2016 (a 200-pip pullback). The outlook on GBP, and therefore, GBP pairs is bearish for the month of February, even beyond the month. Bullish signals in this market should be ignored, because GBP would face challenges at many fronts, including the strengthening of AUD and NZD in this month. USDJPY Dominant bias: Bullish This currency trading instrument moved in a tight range from Monday to Thursday, but there was a significant bullish breakout early Friday. This bullish breakout took price upwards by 300 pips, testing the supply level at 121.50; plus the rally would continue this week. There were strong bullish breakouts also on other JPY pairs: a beginning of protracted bullish movements on those pairs. Yes, bullish movements were already expected to start on JPY pairs around the end of January, and as a result of this, traders are advised to shun bearish signals on JPY pairs in February, because the outlook on them is bullish for the month. EURJPY Dominant bias: Bullish This cross had already started moving upwards before the massive bullish breakout happened on Friday. Altogether, price went upwards by 400 pips last week, reaching the supply zone at 132.00. Here, pullbacks should be seen as opportunities to go long, because JPY pairs have high probabilities of trending further upwards in the month of February 2016. Currencies like EUR and GBP, which would be weak against some other currencies, would be seen going up against JPY in February. EURJPY could go further upwards by at least, 200 pips this week This forecast is concluded with the quote below: “One major aspect of Forex I really value is that trends are easy to find. Trading a trending chart has a big edge for two main reasons. First, trends generate good follow-through. In many instances they go much further than anyone might have expected.” – Gabriel Grammatidis Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Bearish As it was prognosticated, EURUSD did not experience a significant movement last week, though price moved lower. The lower movement has resulted in a bearish signal, since there is now a Bearish Confirmation Pattern in the market. There are bearish targets at the support lines of 1.0750 and 1.0700, which would be reached as price continues meandering its way further south. EURUSD, and of course other EUR pairs, could become weaker. Generally, very strong movements should be seen on most (major) pairs and crosses this week and next week. USDCHF Dominant bias: Bullish This currency trading instrument moved higher last week (by around 140 pips), resulting in a bullish outlook on it. The previously adamant resistance level at 1.0100, which is now a support level, was broken to the upside. Price is currently above the support level at 1.0150, threatening to go further north. The outlook on USD is now bullish, which should reflect on other USD pairs, save USDCAD. This is also true of CAD pairs, for other currencies are weak against CAD, which should continue for some time. GBPUSD Dominant bias: Bearish Cable reached a low of 1.4078 and a high of 1.4362 last week, making a bullish effort in the context of a downtrend. The bias remains bearish, unless price goes above the distribution territory 1.4500, which is a daunting task for bulls because they would be faced with a strengthening USD. Therefore, Cable might experience some pullbacks this week. USDJPY Dominant bias: Bearish This pair tested the demand level at 116.00 and bounced upwards by roughly 280 pips, closing at 118.77 on Friday. This rally was strong enough to become a threat to the recent bearish bias – which would be rendered useless once the supply level at 119.50 is overcome. The possibility of further rally is high, owing to the expected strength in USD. There would be strong volatility on JPY pair from this week till the end of the month. EURJPY Dominant bias: Bearish EURJPY consolidated throughout last week. Even bearish breakouts were quickly countered by bullish corrections. Bulls and bears are presently engaged in a deadlock struggle that will come to an end soon, for this cross will start a directional movement this week, though a rally might be difficult as long as EUR is weak. High volatility would be witnessed. This forecast is concluded with the quote below: “Learning the business of trading is basically no different from learning any other business. Winning means learning major guidelines and concepts that you repeat so often in your own behavior that they become good habits. These good habits then become automatic behavior patterns…” - Andy Jordan Copyright: Tallinex.com

Here’s the market outlook for the week: EURUSD Dominant bias: Neutral This pair experienced short-term upswings and downswings, with no directional movements in the medium term. Just like last week, there may not be very strong movements this week, though there could be significant movements around the end of this month (which could happen on other major pairs as well). There are support lines at 1.0850 and 1.0800. There are also resistance lines at 1.1000 and 1.1050. Price must go above these resistance lines or support lines, paving way for a strong movement expected around the end of this month. It is likely that EUR would rally, which would be visible on all EUR pairs. USDCHF Dominant bias: Neutral Whatever happens on USDCHF would be determined by what happens to EUR. The bias is now neutral, owing to the recent erratic movements in the market. There are support levels at 0.9950 and 0.9900. There are also resistance levels at 1.0050 and 1.0100; and so it is expected that price would go above these resistance levels or the support levels. A movement to the downside is more likely because the resistance level at 1.0100 is now a major barrier to bulls. That resistance level has successfully thwarted rally attempts within the last two weeks. GBPUSD Dominant bias: Bearish This currency trading instrument came down by, at least, 250 pips last week, almost testing the accumulation territory at 1.4250. Price has come down by 950 pips since the middle of December 2015. There is a very strong bearish bias on the market – it does not make sense to go long until there is a bullish retracement of about 300 pips. That is the only condition that can threaten the existing bearish bias; otherwise rallies would offer new short-selling opportunities. USDJPY Dominant bias: Bearish USDJPY consolidated last week, though it showed determination to continue going downwards. Price has come down by close to 600 pips since December 18, 2015, testing the demand level at 116.50 on January 15, 2016. There is a Bearish Confirmation Pattern in the market and it is possible that the market would continue its southward journey, just as certain JPY pairs have done. EURJPY Dominant bias: Bearish This cross, which fell sharply in the first week of this year, simply moved sideways last week. The outlook on the cross is bearish. However, the bearish outlook might be overturned by events affecting the Euro. In case the Euro gains lots of stamina, a rally attempt might be witnessed on this cross, contrary to what other JPY pairs might be doing. This forecast is concluded with the quote below: “An ideal trading methodology should allow for limited risks and unlimited gains.” – Anonymous Copyright: Tallinex.com