Major Forex Pairs Outlook for 2017

By the year’s end, volatility is certain, and coincidentally, there are usually many trading opportunities across Forex pairs.  This year is no exception, and we found 3 trading opportunities among the 4 major pairs, which can possibly be taken by January/2017.

 

EUR/USD (-4.29% year-to-date)

Euro/Dollar just broke an important support at 1.05, and it’s very close to reaching parity, currently at 1.038. The support was broken following major supply in November, and it kept showing selling volumes on the way down, and during the breakout. After a short-term rally on low volume just before Christmas, it keeps heading lower. Despite the historical lows, solely based on the market’s supply and demand, it’s a good time to short it.

Daily background: Weak

 

Support Breakout in Euro/USD Daily

Support Breakout in Euro/USD Daily

 

GBP/USD (-17.15% year-to-date)

There was a selling climax, just before the October’s rally surged. Most recently, at November and December though, the Sterling/Dollar has been showing supply, and the short-term support 1.21-1.23 won’t probably hold. The ultimate support is 1.20, and if there are no significant changes such as VSA demand signals, aim to short in the breakout.

Daily background: Weak

 

Near Support GBP/USD Daily

Near Support GBP/USD Daily

 

USD/JPY (-2.05% year-to-date)

Following an accumulation consolidation, that lasted for 5 months, USD/JPY started a major uptrend. To trade the daily, there should be a retracement first, to around 114. There are no resistances ahead, and so an uptrend still has much room to go.

Daily background: Strong

 

Uptrend in USDJPY Daily

Uptrend in USDJPY Daily

 

USD/CHF (+3.00% year-to-date)

Similarly to the Yen/US Dollar, USD/CHF also went through an accumulation process mostly due to the strength in the US dollar. The rally has been showing good volumes, and as it’s just approaching an important resistance at 1.032, a breakout would be a trigger for a long trade. The next important resistance is at 1.17 which gives enough room for a favorable risk:reward.

Daily background: Strong

 

Near Resistance USDCHF Daily

Near Resistance USDCHF Daily

 


If you wish to trade EUR/USD with our indicators for free, you can try it here.

0 comments

Write a Comment

Fields with * are required