EURUSD
Dominant
bias: Bearish
EURUSD dropped by 280 pips last week, going
below the resistance lines at 1.0950 and 1.0900. The resistance line at 1.0900
(and of course the resistance line at 1.0900) was an adamant obstacle to bears’
interest. Now that the obstacle has been overcome, the next targets for the
bears are the support lines at 1.0800 and 1.0750. The aforementioned resistance
lines should server as obstacles to bullish attempts this week, for their breach
would mean a threat to the current bearish outlook.
USDCHF
Dominant bias: Bullish
This pair went north by over 200 pips last
week, going above the support levels at 0.9500, 0.9550 and 0.9600. The support
level at 0.9500 (which was formerly a resistance level) really proved obstinate
for the bulls because it opposed bullish effort for over 2 weeks while the
bulls kept on besieging it. Once the opposition
was overcome, price was able to rally smoothly. Since price has closed above
the support level at 0.9600, it is possible that the resistance levels at
0.9650 and 0.9700 will be aimed at. This bullish bias might go on till the end
of the month, but things could change in the wake of a strong stamina in CHF,
which is expected by the end of the month.
GBPUSD
Dominant
bias: Bullish
Cable
rose significantly last week, battering the distribution wall at 1.5650. Bears
have been fighting back at that distribution wall, making it hitherto
impossible for bulls to breach it. Nevertheless, the bulls have continued to
struggle for supremacy, and that is the reason behind the current consolidation
in the market. Price shall go out of balance this week, and it is most probable
that the bulls would overcome.
USDJPY
Dominant bias: Bullish
Since testing the demand level at 120.50,
this currency trading instrument has gone upwards by 350 pips. The persistent
bullish movement has put an end to the recent neutral outlook in the market –
for the outlook is now bullish. However, price needs to go towards the supply
level at 124.50 and break upwards through it; otherwise there could be a
massive bearish correction this week or next week.
EURJPY
Dominant bias: Bearish
This cross would continue to go south as EURUSD keeps going
south. The only hope of a meaningful rally here is an event in which the Euro
becomes very strong; otherwise price would continue to drop further and further
(whether speedily and gradually). This bearish force is formidable here,
coupled with the expectation of a massive gain in the Yen itself around the end
of this month.
This forecast is concluded with the quote below:
“What makes trading so fascinating and, at the same time,
difficult to learn is that you really don’t need lots of skills; you just need
a winning attitude.” –
Mark Douglas
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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