Here’s the market outlook for the week:
EURUSD
Dominant
bias: Bullish
From
the weekly low of 1.0935, this pair went upwards by over 200 pips, to close
above the support line at 1.1100 on Friday. Price is now close to the
resistance line at 1.1150, and a breach of that resistance line would enable
price to go towards another resistance lines at 1.1200 and 1.1250. As long as
the support line at 1.1000 is not broken to the downside, the bullish signal,
which has formed in this market, would remain valid.
USDCHF
Dominant bias: Bearish
USD/CHF
was unable to go above the psychological level at 1.0000. An attempt to do that
on October 25 was quickly forestalled – even before that psychological level
was even tested. It has been mentioned that failure to breach the level might
result in a serious pullback, and that was exactly what happened. Price pulled
back significantly last week, to close below the resistance level at 0.9700 on
Friday. This 210-pip bearish movement has resulted in a Bearish Confirmation
Pattern in the market and further price decline is a possibility this week
(unless USD gathers some stamina).
GBPUSD
Dominant
bias: Bullish
Following a few weeks of consolidation, GBPUSD rallied massively last
week. Price went upwards 370 pips, to test the distribution territory at
1.2550. The bias has already turned bullish in the short term (though it would
take another 1000-pip movement to the upside, before the bias on the daily
chart can turn bullish). Right now, there is a strong buying pressure in the
market and this should continue this week. Unless USD gathers lots of stamina,
bulls would be able to reach the distribution territories at 1.2650, 1.2700 and
1.2750.
USDJPY
Dominant bias: Bearish
USDJPY consolidated on Monday and then
plummeted on Tuesday. While going south, the demand level at 102.50 was almost
tested, and this has brought an end the recent bullish bias. The demand level
at 102.50 would eventually be tested, and probably breached to the downside.
However, there is also a possibility that JPY pairs would make some bullish
attempts this week, which could also be reflected on USDJPY.
EURJPY
Dominant bias: Bullish
This trading instrument did not move very much last week.
Unlike USDJPY, it was engaged in a slight bearish correction in the middle of
last week; and the corrective actiion was ended on Friday as the market closed
on a bullish note. This week, whatever happens to EUR would have some impact on
the market. Before the end of the week, price would have gone either above the
supply zone at 115.50 or below the demand zone at 113.50.
This forecast is concluded with the quote below:
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MarketAddict (Source: Elitetrader.com)
Source: www.tallinex.com
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