Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market began the current strong bearish movement in April. This month
(especially from early June), price consolidated till June 14, before the large
pullback we are currently witnessing. The large pullback has put more emphasis
on the dominant bearish bias; thus price is expected to go further southwards
this week, reaching the support lines at 1.1600 (an easy target), 1.1550 and
1.1500.
USDCHF
Dominant bias: Bearish
This pair is bearish in the long-term, but bullish in the short-term. It
is somewhat weird that both USDCHF and EURUSD have been bearish for some time,
but the situation seems about to change. On June 14, there was a sudden bullish
breakout, which was strong enough to bring about a short-term bullish signal.
There is a possibility that price could keep on going northwards this week,
reaching the resistance levels at 1.0000 (an important level), 1.0050 and
1.0100. However, an exceptionally strong buying pressure would be needed for
the resistance level at 1.0100 to be reached.
GBPUSD
Dominant bias: Bearish
In the first week of June, Cable consolidated in the context of a
downtrend. The same thing happened last week…. before the bearish movement that
occurred on Thursday, which points to bears’ supremacy. The weakness in the
market is currently visible and since the outlook on GBP pairs is bearish for
this month, further southwards movement is expected, which would enable price
to reach the accumulation territories at 1.3250, 1.3200 and 1.3150.
USDJPY
Dominant bias: Bullish
USDJPY managed to go upwards last week, and it was able to close above
the demand level at 110.50 on Friday. There is a Bullish Confirmation Pattern
in the market, which points to the possibility of price going towards the
supply levels at 111.00, 111.50 and 112.00. Nonetheless, the further northwards
the market goes, the greater the potential of a strong pullback, which can happen
before the end of the week.
EURJPY
Dominant bias: Bearish
The pullback that occurred on April 14 points to the fact that bears are
still a force to reckon with. The major bias on the market is bearish, and
since EUR is currently weak, price is supposed to continue moving downwards.
The outlook on JPY is bearish for this week – another factor that may
contribute to continuous weakness in the market. The next targets are the
demand zones at 128.00, 127.50 and 127.00.
GBPJPY
Dominant bias: Bullish
This trading instrument simply moved in a range last week. Price ranged
between the supply zone at 148.00 and the demand zone at 146.00. This week,
either the supply zone or the demand zone would be breached forcefully as price
assumes a strong, directional movement. The most likely direction is bearish (which
may invalidate the extant bullish bias), and that may enable price to reach the
demand zones at 146.50, 146.00 and 145.50.
This forecast is concluded with the quote below:
“Regardless of time
frame and date, a chart is a chart. The only thing that really changes over the
years is how you manage what you see. As long as human beings trade a market,
human emotional reaction to the movement of price will cause certain patterns
to form.” – Joe Ross
