Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair trended downwards from Monday to Thursday and then rallied
significantly. This has resulted in a bullish bias on the market, as price
nearly reached the resistance line at 1.0700. This week, further rally is
anticipated because the outlook on Greenback is bearish for the week: a factor
that may be favorable to EURUSD. The first target for the week is the
resistance line at 1.0700, and then followed by the resistance lines at 1.0750
and 1.0800.
USDCHF
Dominant bias: Bullish
There is still a weak bullish outlook on this pair, though it is
currently showing some weakness. As long
as EURUSD goes upwards, USDCHF would find it very difficult to go upwards.
Price was corrected lower on Friday, and since USD is expected to be weak this
week, the support levels at 1.0050 and 1.0000 could be tested. Attempts to
breach the resistance level at 1.0150 has already failed and that resistance
level would serve as a strong barrier to any bullish effort this week.
GBPUSD
Dominant bias: Bearish
GBPUSD went south by 140 pips last week. Price has trended downwards by
310 pips since February 27, 2017, resulting in a clear Bearish Confirmation
Pattern in the market. There is now a bearish siege at the accumulation
territory of 1.2150, which has been battered without any success. While GBP could
fall further versus other currencies like CHF, AUD and NZD, it may not fall
further versus USD, since USD may experience some weakness this week, coupled
with strong obstacles at the accumulation territories of 1.1250 and 1.1200.
There is a logical expectation of some rally in GBPUSD.
USDJPY
Dominant bias: Bullish
The market managed to go upwards last week after moving sideways in the
first few trading days of the week. The bias is bullish, though not a strong
one. Price closed below the supply level at 115.00 on March 10, and it might
make effort to go upwards from there. This week, the outlook on JPY pairs is
bullish, but the expected weakness in USD might scuttle bullish effort in the
market. There are supply levels at
116.00, 115.50 and 115.00. There are also demand levels at 114.50, 114.00 and
113.50.
EURJPY
Dominant bias: Bullish
Just like USDJPY, this cross pair moved sideways in the first few days of
the last trading week, and then broke upwards in agreement with the recent
bullish outlook on the market. From the weekly low of 120.01, price went north
by 280 pips, and closed at 122.51 on Friday. There is a Bullish Confirmation
Pattern in the market, and since the outlook on JPY pairs is bullish for this
week, further movement is expected on EURJPY (a movement of at least, 200
pips). EUR is currently strong in its own right and this is a factor that could
help the cross pair upwards.
This forecast is concluded with the quote below:
“Trading is a
business.” – Joe Ross
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