EURUSD
Dominant
bias: Bearish
This pair trended downwards in the first
few days of last week, challenging the support line at 1.0950. From that
support line, price went upwards by 250 pips, reaching the resistance line at
1.1200. The upward movement has been a threat to the existing bearish outlook
and a movement above the resistance line at 1.1250 would result in a Bullish
Confirmation Pattern in the market. This week, further weakness in USD may
enable this pair to trend further upwards.
USDCHF
Dominant bias: Bullish
Though the bias on USD/CHF is bullish,
bulls were unable to take price above the resistance level at 0.9500. That
resistance level was tested several times but it could not be broken to the
upside, which made the market experience some bearish correction. Price closed
below the resistance level at 0.9400 and further bearish correction could
invalidate the extant bullish bias. Things would now be difficult for bulls because
it is expected that USD would be weak this week, plus CHF may gain a lot of
stamina by the end of this month.
GBPUSD
Dominant
bias: Bearish
There
is now trending movement on Cable, which dived by 250 pips last week. Price
tested the accumulation territory at 1.5350, and then rallied by over 160 pips,
closing above the accumulation territory at 1.5500. It is clear that a measure
of volatility is now in this market, for it was in an equilibrium phase a few
weeks ago. Certain other majors were also in equilibrium phases in some past weeks/months.
This week, Cable might continue to make northward attempts, in case bears fail
to push price below the accumulation territory at 1.5450.
USDJPY
Dominant bias: Neutral
This trading instrument, which once vacillated
between the demand level at 122.00 and the supply level at 124.50, trended strongly
last week. Price went seriously south, testing the demand level at 120.50, and
after that, price rose by over 230 pips, closing above the demand level at
122.50. The bias could have gone bearish, but the subsequent rise in price has neutralized
that. Further northward journey may be deceptive here, for there is still a
high possibility that this trading instrument would become weak again this week
or before the end of this month. JPY may become very strong by the end of the
month and this would send most JPY pairs tumbling.
EURJPY
Dominant bias: Bearish
Last week, EUR/JPY was unable to go below the demand zone
at 133.50, in spite of commendable effort of bears. Price went out of balance
around that demand zone and it rallied significantly by 350 pips, closing around
the supply zone at 137.00. This strong rally has put the recent bearish bias in
jeopardy – a further northward movement of 100 - 150 pips would simply result
in a confirmed bullish bias. As a result of the ongoing events in the Eurozone,
this cross and other JPY pairs might open with gaps this week (and of course
with other EUR pairs).
This forecast is concluded with the quote below:
“Money is made
as a by-product of following a sound trading plan.” – Louise Bedford
Source: www.tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
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