Here’s the market outlook for the week:
EURUSD
Dominant
bias: Bullish
This pair rejected the recent southward
pull on it, trended upwards and resulted in a confirmed bullish bias. From the
support line at 1.3700, this market has moved upwards and it could test the
resistance line at 1.3950. Testing the resistance line at 1.4000 also is not an
impossibility, for the trend has a probability of continuation rather than that
of a reversal. Along the way there could be some pullbacks before the pair
reaches the aforementioned targets.
USDCHF
Dominant bias: Bearish
The USD/CHF has been weak so far – that is
the latest development in the market. The strength in the EUR/USD is pushing
the USDCHF downwards, for they must go into negative correlation with each
other, especially when there are significant moves in the markets. As long as
the EUR/USD is strong, the USD/CHF pair will continue its weakness; it could
reach the support level at 0.8700.
GBPUSD
Dominant
bias: Bullish
The
significant rally in this currency trading instrument has resulted in a Bullish
Confirmation Pattern in the chart. The distribution territory at 1.6800 has
been challenged before the price was corrected a little. The price could go
upwards again to challenge that distribution territory. It may slash through
it, close above it and go further upwards towards other distribution
territories at 1.6850 and 1.6950.
USDJPY
Dominant bias: Bearish
It was
expected that the last bullish run on this currency trading instrument would
hold out till around April 10, though those who went against the Yen would have
realized some gains in the latter part of March 2014. The present conspicuous weakness
in the USD has resulted in an established bearish outlook. It would, therefore,
make sense to seek short trades here. The market level at 101.50 has been
besieged, and with an increase in the selling pressure, the market level would
be violated as the prices reaches out for the market level at 101.00.
EURJPY
Dominant bias: Bearish
The bias on this cross is bearish, but the trend itself has
been limited in force because of the perceived strength in the EUR. The price
is very volatile; plus the struggle between the bears and the bulls is intense.
However, the current price action shows that there are greater odds on the side
of the bears. We may want to put our target at the demand zone of 140.00.
This forecast is concluded with the quote below:
“The biggest mistake you can make is changing your
trading style based on your previous trade or series of trades.” - Peter Brandt
Source: www.tallinex.com
Eye-opening trading lessons: http://www.harriman-house.com/experttraders
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