Here’s the market outlook for the week:
EURUSD
Dominant
bias: Bearish
The bias on the EURUSD is still very
bearish irrespective of the shallow rally the market is currently experiencing.
In this market, rallies have proffered opportunities to sell short in the
context of a downtrend. The continuation of the bearish bias may force the
price to test the support line at 1.2800. Along the way, serious bullish
breakouts may be contained at the resistance lines of 1.3000 and 1.3050. Any
movement above these resistance lines would signify the beginning a new bullish
journey.
USDCHF
Dominant bias: Bullish
This currency trading instrument is in a
bullish mode – with a clean Bullish Confirmation Pattern in the market. The
bulls have always been interested in pushing the pair further upwards, but this
is not without stubborn challenges from the bears. The challenges have resulted
in high volatility in the market, and the price may still manage to reach the
resistance level at 0.9500, which is the target for next week (provided that
the USD continues to be strong).
GBPUSD
Dominant
bias: Bullish
This
pair - unlike its EURUSD counterpart - has broken upwards in favor of the
bulls. In fact, the price action in the market has resulted in an established
bullish signal and short trades are no longer rational. The market is now
moving above the accumulation territory at 1.6300, going towards the
distribution territory at 1.6450. As long as the market is above the
aforementioned accumulation territory, the bullish signal is considered
valid.
USDJPY
Dominant bias: Bullish
This is a
strong bull market which has been going upwards since July 2014. Since then,
the perpetual weakness in the Yen has enabled this pair to move north by over
750 pips. The same weakness in the Yen has enabled most other JPY pairs go
north significantly. This market looks very overbought and a reversal is
imminent, but is not advisable to go against the trend until that reversal has
taken place. The market can still go further north; testing the supply levels
at 109.50 and 110.00. Should the Yen gain any considerable stamina, the market
may plunge towards the demand levels at 107.00 and 106.50.
EURJPY
Dominant bias: Bullish
It is not a surprise that the EUR, which is weak somewhere
else, is strong versus the JPY. The weakness in the JPY is the basic reason for
the bullish momentum that is driving this market upwards. From the demand zone
at 136.00, the price skyrocketed above the demand zone at 140.00, going further upwards. This is a
movement of over 440 pips since last week. The market is overbought, but it is still
seen as being capable of reaching the supply zones at 150.50 and 160.00
respectively. Nevertheless, the downside risk is now very high and any sudden
strength in the Yen could make the price tumble, reaching the demand zones at
139.00 and 138.50.
This forecast is concluded with the quote below:
"With love
and patience, nothing is impossible for a dedicated trader." -- Old Trader
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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