Outlook for Major Currencies

With the help of our methodology we try to define the trend on the hourly chart (Daily Outlook), daily chart (Short-Term Outlook) and weekly chart (Medium-Term Outlook) for the major currency pairs: EURUSD, GBPUSD, and USDJPY.

Daily Outlook

In these updates our focus is to identify the trend on the hourly chart - the so-called very short-term (VST) trend (this trend usually lasts several days to a few weeks) and to formulate a hypothetical trading strategy that usually aims for 90-180 point moves in the major currency pairs risking 40-70 points. This analysis is updated every day usually between 8:00 and 10:00 CET. If necessary, special updates are posted during the day. (CET stands for "Central European Time")

Short-Term Outlook

In these updates our focus is to identify the trend on the daily chart – the so-called Short-Term (ST) trend (this trend usually lasts several weeks to several months) and to formulate a hypothetical trading strategy that usually aims for 300-600 point moves in the major currency pairs risking 100-200 points. This analysis is updated biweekly: before the open each Monday (usually posted during the weekends) and between 9:00 and 10:00 CET on Wednesdays.(CET stands for "Central European Time")

Medium-Term Outlook

In these updates our focus is to identify the trend on the weekly chart – the so-called Medium-Term (MT) trend (this trend usually lasts several months to a few years) and to formulate a hypothetical trading strategy that usually seeks for 800-1200 point moves in the major currency pairs risking 300-500 points. This analysis is updated bimonthly. 

It is important to understand that we do not formulate trading strategies all the time. We try to act only when the chances of success are in our favor and when the risk/reward ratio is strongly favorable. That may result in missing out some big moves. We may have identified these big moves in our analyses, but may have decided not to formulate trading strategies for them because the odds of success have not been strongly in our favor.