Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
EURUSD moved upwards by about 100 pips last week,
now testing the resistance line at 1.0700. The upwards movement last week was
not strong, but it was noticeable enough to show that the recent bullishness in
the market remains a valid thing. This week, the resistance lines at 1.0750,
1.0800 and 1.0850, may be attained, as long as EUR continues to be stronger
than USD in the near-term.
USDCHF
Dominant bias: Bearish
USDCHF went down lower and lower last week, continuing the bearish
journey that started early this month. The great psychological level at 1.0000
was tested again and again, but price could not breach it to the downside
(staying below it). Price has repeatedly bounced off the psychological level,
but as the bias is bearish, upwards bounces would only provide good
short-selling opportunities. As long as EURUSD goes up, USDCHF would go down,
and the psychological level at 1.0000 would end up being breached.
GBPUSD
Dominant bias: Bearish
GBPUSD began the last week on a bearish note (other GBP pairs gapped down
and then started trending upwards). Price moved up by more than 410 pips,
reaching the distribution territory at 1.2400. However, the strong rally was
not enough to overturn the recent bearish outlook on the market. For the
bearish outlook to be overturned, price would need to go upwards by at least,
another 300 pips this week; otherwise, the rally that happened can eventually
turn out to be a temporary rally that later confirms bears’ supremacy.
USDJPY
Dominant bias: Bearish
This pair went downwards on Monday and Tuesday and then started to go
upwards from Wednesday to Friday. There is still a Bearish Confirmation Pattern
in the 4-hour chart. Unless price is able to stay above the supply level at
117.00 - which would require a serious rally - the bearish outlook would remain
logical. There are demand levels at 114.00, 113.50 and 113.00, which may be
tested again, in case price comes down.
EURJPY
Dominant bias: Neutral
This cross pair briefly ended its sideways movement when it assumed a
southward journey on January 9. Price attempted to go further downwards last
week, but further downwards movement was rejected before it reached the demand
zone at 120.50. And since price has gone upwards on January 18 and 19, it has
been forced back into a neutral region. This week, a serious northwards
movement would bring about a “buy” signal; while a southward movement would
simply bring back the recent “sell” signal in the market.
This forecast is concluded with the quote below:
“What I do believe, most of the time, are the
numbers on the statement of my trading account. If they are getting bigger,
then I am winning.” – Joe Ross
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
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