EURUSD
Dominant
bias: Bearish
The bullish expectation on EURUSD has not
materialized, for price dropped by over 300 pips. Indeed, last week saw the
weakest movement on EURUSD since February 2015. Price has closed below the resistance
line at 1.0850 and it could even reach the support lines at 1.0800 and 1.0700.
Unless EUR is fated to reach parity with USD, the worst case-scenario on this
market should not take it below the great support line at 1.0500. This week, bulls
may make some effort to halt or reverse the current bearish trend.
USDCHF
Dominant bias: Bullish
This currency trading instrument moved
upward by over 300 pips last week, owing to the weakness in CHF and the strength
in USD. Price was able to move above the resistance level at 0.9850 and stays
there, threatening to go towards the resistance level at 0.9900. Even the
resistance level at 0.9950 is not safe from bullish attacks, because the bulls
still have lots of energy left in them. The only thing that can change the
course of the battle is an exponential stamina in EURUSD.
GBPUSD
Dominant
bias: Bearish
GBPUSD, which is positively correlated with EURUSD, also fell southward last
week, going below the distribution territory at 1.5050. A movement of 380 pips
in one week is not something to be ignored, since this has resulted in a strong
Bearish Confirmation Pattern in the chart. While the bearish movement is
according to expectation, there may be some rally this week. The accumulation territories
at 1.5000 and 1.4950 are being watched, and the distribution territories at
1.5100 and 1.5200 may be potential targets in case of a rally in this week.
USDJPY
Dominant bias: Bullish
As it was
forecasted, this pair broke upwards, following the recent consolidating
movement in the market. The price moved upwards from the demand level at 119.50,
slashing through the supply level at 121.00, but failing to close above it. As
long as Greenback holds onto its bullishness, the bias on this pair is bullish.
The current price action and candlestick formations on 4-hour chart all point to
further northward journey.
EURJPY
Dominant bias: Bearish
This is a bear market, which moved strongly towards the price
zone around 131.00. This movement is contrary to the expectation, and
therefore, long trades are currently not considered here. We should no longer
expect any meaningful rally on this cross unless EUR gains a considerable
amount of stamina. Then, we would want some confirmation of a trend reversal
before long positions are sought.
This forecast is concluded with the quote below:
“I have found that when my
primary goal is to trade well, I regularly experience moments of flow. I have
also found that when my primary goal is to simply trade well, my results are
better as a consequence.” – Dr. Ken Long
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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