Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair sent upwards last week, generating a
bullish signal. Price closed above the resistance line at 1.0600 on Friday, so
there is a possibility that it may go further upwards this week reaching the
resistance lines at 1.0650, 1.0700 and 1.0750 this week. It should be noted
that the market is quite choppy (though bullish), which may cause some
temporary downswings to form as further bullish attempts are made.
USDCHF
Dominant bias: Bearish
A bearish signal has formed on
USDCHF, which usually goes in the opposite direction to EURUSD. From a weekly
high of 1.0247, price has gone down 200 pips before undergoing the current
shallow correction. In spite of the
weakness in this market, price is yet to breach the psychology level at 1.0000
to the downside, and that is what might be achieved this week, as the bearish
journey continues. A breach of the level 1.0000 would make long trades
completely illogical.
GBPUSD
Dominant bias: Bearish
GBPUSD went sideways in the beginning of last week, made bullish effort
in the middle of the week, to move sideways again at the end of the trading
week. The outlook on the market is essentially bearish and what happened last
week has shown that rallies in the market would always be temporary and they
should be taken as opportunities to go short. The distribution territories at
1.2150, 1.2100 and 1.2050 might be breached this week.
USDJPY
Dominant bias: Bearish
This trading instrument went downwards by 350 pips last week – a
condition that has brought about a clear Bearish Confirmation Pattern on it.
Price is expected to keep on making bearish effort this week, targeting the
demand levels at 114.00, 113.50 and 113.00. It is possible that some rally
attempts would be witnessed this week, but they should not invalidate the
current Bearish Confirmation Pattern unless price goes above the supply level
at 118.00, which is not currently likely.
EURJPY
Dominant bias: Bearish
EURJPY, which had been neutral for some weeks, tried to go seriously
downwards last week. When compared to USDJPY, the bearish movement on EURJPY is
not very strong, but a bearish bias is already in place. A movement above the
supply zone at 123.00 would return the market into a neutral region. while a
movement below the demand zone at 121.00 would put a greater emphasis on the
currently nascent bearish bias.
This forecast is concluded with the quote below:
“Simple trading ideas work surprisingly well.” – Chris Tate
Source: www.tallinex.com
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