Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market swung upwards and downwards last week, without a directional
movement. Nevertheless, the major bias remains bearish, and the outlook on EUR
pairs is mostly bearish for this week. It is possible that price will test the
support lines at 1.1600, 1.1550 (which were previously tested last week). Price
may also reach the support line at 1.1500, and possibly breach it to the downside.
But that will require a heavy selling pressure.
USDCHF
Dominant bias: Bearish
Price went sideways from Monday to Wednesday, and fell on Thursday and
Friday, corroborating the outgoing bearish outlook on the market. Both USDCHF
and EURUSD are currently bearish: But protracted bearish pressure on the latter
may help a bullish signal to be generated on the former. There are support
levels at 0.9850 and 0.9800. There are also resistance levels at 0.9900 and
0.9950.
GBPUSD
Dominant bias: Bearish
In the context of a downtrend, price went further
southwards, shedding 160 pips and almost testing the accumulation territory at
1.3100. There was an upwards bounce on Thursday, but that would be an
opportunity to sell short at higher prices (unless the distribution territory
at 1.3400 is breached to the upside). GBP pairs (as well as other major pairs)
will experience high volatility this week, and also in the first week of July.
USDJPY
Dominant bias: Neutral
The long-term bias is bullish, but the short-term bias is bearish.
Throughout last week, price meandered between the demand level at 109.50 and
the supply level at 111.00. Should price continue to move within the confines
of the aforementioned demand and supply levels, the short-term bias would
remain neutral. Once the confines are breached, a directional movement will
resume, and it could most likely favor bulls.
EURJPY
Dominant bias: Bearish
Just like its USDJPY counterpart, this cross mostly ranged last week (though
the recent bias on the market is bearish). For the ranging movement to end, it
is either price will breach the demand zone at 127.00 to the downside (going
further downwards), or price would need to breach the supply zone at 129.00 to
the upside (going further upwards). One of these conditions must be met for the
bearish bias to be supported or invalidated; otherwise the trend would become
neutral.
GBPJPY
Dominant bias: Bearish
This cross underwent a heavy selling pressure on July 18 and 19, but
bulls pushed price upwards on July 20 and 21. There remains a Bearish
Confirmation Pattern in the market, and it would be invalidated only when price
moves upwards by 500 pips from here. On the other hand, price could continue
falling towards the demand zones at 145.00, 144.50 and 144.00. Price could even
go further downwards than that.
This forecast is concluded with
the quote below:
“Trading is a
process-oriented endeavor for those who are serious about becoming and
remaining a consistently successful trader.” – Dr. Woody Johnson
