Here’s the market outlook for the week:
EURUSD
Dominant
bias: Bearish
In a slow and tardy manner, this pair has
been trending downwards. The movement is tardy because consolidation phases can
be perceived in the market; yet it can also be clearly seen that the bears dominate
the market. There is a shallow rally at the moment, which ought to be contained
at the resistance lines of 1.3600 and 1.3650 respectively. This is necessary
for the bearish trend to continue, because any movement above the resistance
line would mean the end of the bearish bias.
USDCHF
Dominant bias: Bullish
It is expected that this currency trading instrument
close above the strong psychological resistance level at 0.9000. This is a must
– for the bullish outlook to continue to be valid. The market breached the resistance
level several times this week and last week, but it is was unable to stay above
it. This inability to close above the resistance line or go southward has led
to a recent sideways movement. This is what would happen eventually: should the
price fail to close above the resistance level at 0.9000 and go further towards
the resistance level at 0.9050, another strong bearish bias would start. The
USD may not reach parity with the CHF as soon as we think.
GBPUSD
Dominant
bias: Bullish
There
has been a significant upwards surge on this market. The price was bullish last
week, and it experienced serious volatility earlier this week. From the
accumulation territory at 1.6750, the Cable rallied by more than 240 pips. The
distribution territory at 1.7000 is thus an easy target. This is a great
psychological zone, and should the price succeeded in closing above it, the
next target would be the accumulation territory at 1.7100. However the
possibilities of pullbacks along the way cannot be ruled out.
USDJPY
Dominant bias: Bearish
The USD/JPY
has become bearish, going downwards from the supply level 102.50. The current
rally in the price may be another opportunity to sell short; provided the rally
does not take the price above the supply level at 102.50. Should the price go
further southward, it might reach the demand levels at 101.50 and 101.00.
EURJPY
Dominant bias: Bearish
This is also a bear market. The price has bounced up from
the demand zone at 138.00, but this is supposed to be limited. The price may
soon fall downwards again, testing that support zone, even breaking it to the
downside.
This forecast is concluded with the quote below:
“Sometimes we needed a little bit of luck, but if we
followed the strategy, we were more likely to come out on top.” – Lee Sandford
Source: www.tallinex.com
Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
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