Here’s the market outlook for the week:
EURUSD
Dominant
bias: Bullish
The major determinant of the direction of
the EUR/USD (including most other USD pairs) is the USD itself. As a result of
the weakness in the USD, the EUR/USD pair has been able to sustain its bullish
attempts, which have been going on for about two weeks. There is now a Bullish
Confirmation Pattern in the chart, and the price may end up reaching the
resistance line at 12900. There are support lines at 1.2700 and 1.2650. The
current pullback in the market may proffer opportunities for long trades.
USDCHF
Dominant bias: Bearish
This pair has inevitably been moving in
the opposite direction to the EUR/USD – hence the bearish outlook on it. Since
October 6, 2014, the price has dropped by almost 300 pips. There is a high
probability that the weakness in the market may continue, enabling the price to
test the support lines at 0.9400 and 0.9350 respectively. Meanwhile, any
bullish attempts may be frustrated at the resistance levels of 0.9550 and
0.9600.
GBPUSD
Dominant
bias: Bullish
This
market is bullish because of the bullish effort on it, and the bullish effort
has become strong enough to drive the price above the accumulation territory at
1.6050. Long trades are no longer advisable here, unless the price drops below
the accumulation territory at 1.6000. Really, the price is expected to continue
going upwards within the next several trading days, reaching the distribution
territory at 1.6200.
USDJPY
Dominant bias: Bearish
This has
remained a bear market, unless the current rally in the context of the
downtrend continues until the price is able to reach the supply level at 108.00.
By all indication, it seems the market is bent on moving upwards, but one
should stay aside until the supply level is breache to the upside. Otherwise, this
may turn out to be another short-selling opportunity.
EURJPY
Dominant bias: Bearish
The scenario on this currency trading instrument is nearly
similar to that of the USD/JPY. The market is making some commendable effort to
go north, but the overall bias remains bearish. This is a highly volatile
market, with upswings alternated by downswings. The high volatility should be
put into consideration when trading. When the instrument moves above the demand
zone at 137.00, it can be said the bearish bias is over; otherwise, buyers
should be cautious.
This forecast is concluded with the quote below:
"At the
heart of all trading is the simplest of all concepts—that the bottom-line
results must show a positive mathematical expectation in order for the trading
method to be profitable." - Chuck Branscomb
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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