Here’s the market outlook for the week:
EURUSD
Dominant
bias: Bearish
This pair has been able to continue its
southward journey. The price is now going below the resistance line at 1.3400. The resistance line is a war zone between the
bulls and the bears, for the price would be making some attempts to breach it
to the upside. Should the initial resistance line get broken to the upside, another
resistance line at 1.3450 would serve as another hurdle for the bulls. A break
above the resistance line at 1.3450 would pose a serious threat to the bearish
trend. Meanwhile, the bearish trend may continue, thus pushing the price
towards the support lines at 1.3350 and 0.3300.
USDCHF
Dominant bias: Bullish
As it was forecasted last week, the
USD/CHF was able to test the resistance level at 0.9100. This is an area where
some bulls would like to take their profits, because the price ought to retrace
southwards from there. For the bullish journey to continue, the price needs to
break that resistance level to the upside, going towards another resistance
level at 0.9150. Should the price fail to do this, a near-term or medium-term bearish
run would begin.
GBPUSD
Dominant
bias: Bearish
The
Cable dived by about 120 pips this week. The bearish outlook is currently
strong, forming a clean Bearish Confirmation Pattern in the chart. The price
has a great probability of continuing further downwards, testing the
accumulation territories at 1.6850 and 1.6800 respectively. On the other hand,
the distribution territories at 1.6950 and 1.7000 should act as impediment to
any rallies along the way.
USDJPY
Dominant bias: Bullish
The Greenback
is strong; no wonder the USD/JPY rallied, especially in the face of the
weakness in the Yen. The market has tested the supply level at 103.00, which must
be broken to the upside before the northward movement can continue. Otherwise,
there could be some deep pullbacks that might take the price towards the demand
levels at 102.50 and 102.00.
EURJPY
Dominant bias: Bullish
The EUR itself is not that strong, but as a result of an exponential
weakness in the JPY, the EUR/JPY cross has been able to reject the recent
bearish bias on it, paving way for a new bullish signal in the market. As long
as the price stays above the demand zone at 137.00, the bullish signal would
make sense. The price might even go upwards towards the supply zone at 138.00.
This forecast is concluded with the quote below:
“The markets
are, as it were, behavioral economics in action. And that is what you benefit from
as a trend follower.” – Michael Covel
Learn from the Generals of the
Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
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