2015 Quarter 2 FOREX Outlook

Looks like Q1 went just as I planned it would. I took the time to highlight some of the highest growth potential pairs in the FOREX markets. Quarter 2 of this year looks like it has some big plays for traders and investors alike. In this article we will explore some of those opportunities.

First let's look back at the top 3 major pairs over the past three months.
USD:
The dollar rose significantly against every pair except the Swiss Franc. Some potential pairs to trade that stood out to me were EURUSD, USDJPY, and GBPUSD. To be more specific, I have set a target for selling the EURUSD into .97000.

I have set a 122.000 target for USDJPY and a GBPUSD target of 1.42300 to sell into.

GBP:
The pound had a rough time carving out any significant gains or losses due to a mix of sell-offs and rallies between all of the major crosses. GBPJPY has been stuck in a range between 185.000 and 175.000 which makes me weary of engaging in any trades with this pair. If I do it will be within the range or for a breakout above 185.000. GBPCHF sold off heavily and rallied to fill the gap only to turn back around and tick back down towards the middle of the gap.

GBPUSD should continue lower into my target of 1.42300. Along with this we have GBPNZD which I have set a target range of 1.94 and 1.92 for traders to sell into.

EUR:

The EURO was the at the butt of everyone's trades. This currency was sold off more than any other pair in the major currency markets. Above is an illustration of EURGBP which was sold off very heavily in the first quarter. I see this selling continuing and I've set a target of .7000 but not before the market retraces a bit into .75000 and then sending the pair lower. Again I put emphasis on a EURUSD .97000 target. EURJPY will be falling a little more this quarter and I have set a target of 120.000 for the pair seeing as how the JPY needs some relief from being sold by all the other major crosses. 

Top 2015 Forex Trades

This year will be a good year for the Forex Markets. With a slew of important economic news coming out of the European and Japanese regions. Recently published, our 2015 Forex Outlook details the technical and fundamental factors that are the foundation for the trades in this report. The 3 major currencies USD, EUR, and GBP offer some of the greatest opportunities for growth based on analysis of fundamental analysis of upcoming news events and technical analysis of specific pairs that are directly affected by the news.  

USDJPY:

The USD has experienced some serious growth through 2014 and it looks as if this trend will continue at least half way through 2015. The BOJ wants to ignite some inflationary pressure on its economy through some more huge stimulus plans and the US wants to raise its lending rates this year. That equals a buy for the dollar and a sell for the yen. 

On this monthly chart we can clearly see that the USDJPY has rebounded substantially and following the trend is the name of the game. A good buy entry would be at 115.000 and an initial profit target is set at 125.000. The next profit target is 135.000. The stop loss limit for this target is 110.000. That's a 500 pip risk for a 2000 pip gain; 1:4 risk/reward ratio.   

EURGBP:
The EUR has been the bottom of everyone's trade since 2014 and with Greece's General Election results it looks like the selling will continue. The EURGBP is a perfect pair to take advantage of this situation with the technicals of this instrument are telling us the pressure to the downside is real.

The best entry to exploit this trade is to find resistance around .7800 and sell into the next major support at .7000. The stop loss limit for this .8000. These levels leave us with a 200 pip risk and a 800 pip reward; 1:4 risk/reward ratio.

EURUSD:
Still the most traded currency pair in the Forex Markets. On a monthly chart we see that the technicals have truly slid into bears' territory. The pair has broken below the major 1.2000 support.

The volatility of this pair leaves us with no choice but to trade this pair using wide ranges for our orders. The best sell entry is actually a zone. Between 1.19000 and 1.2050 is the recent support zone broken and will turn to our new entry zone. 1.35000 is the stop loss limit price. The best scenario and most probable will be the price of this pair dropping to parity at 1.0000. The next profit target will be .90000; That's roughly a 1:2 risk/reward ratio.  

GBPCHF:
The Swiss bank finally removed its CHF ceiling and has cleared a path for CHF bulls. The techincal truth about this pair is that the selling trend has been in demand for nearly a decade and the pair's price has moved below a serious moving average line.

A great entry level would be a sell from 1.50000. A stop loss limit would be perfect just above the high of the recent leg lower which is 1.55400. The lowest low is the profit target to aim for at 1.15000. That's a risk of 540 pips and a potential reward of 3,500 pips; roughly 1:6.5 risk/reward ratio!

These trades offer exposure to some of the Forex Markets most plausible and profitable fluctuations. They also work in concert with each-other creating synergy through the hedging strategy. We are buying the dollar through our EURUSD sell and USDJPY buy. We are selling the EURO through our EURUSD and EURGBP sells. We are safe from a flat GBP with our EURGBP sell and GBPCHF sell which will give us insight to the strength and market sentiment which is hard to analyze in the GBP at this point.  

Low-Volatility - Swing Trades Pt. 1.3

So it's clear that today showed a lot of indecision in the EUR/USD. The pair stayed in a tight range all day but still below the 1.35 support that was broken yesterday. All the haters looking to fade the breakdown are about to be shaken out by the pros as they cause the maket to move sideways and erratic until the path is clear to either drop further or reverse and start marching up. As the buyers of 1.35 panic and start buying more to average their already losing poisons.. I mean positions, or they sell to get out of their losers, they'll push the mRket down lower and the institutions will most likely be really happy to take the orders. I'd sit on the sideline until the LONDON session to watch for bids towards the broken support to clean up lingering orders and to see if they might want to save everybody some time and just drop the pair a hundred pips or so to cause a free-fall. None-the-less be attentive tomorrow as today wasn't easy or helpful like yesterday and we might see some action that could really shift the market. 

PS: AT THE END OF THE WEEK I'LL BE ANNOUNCING SOME AWESOME NEWS SO TUNE IN FOLKS!!