Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair trended upwards last week, briefly went above the resistance
line at 1.0750, and then retraced southwards. There are support lines at 0.0700
and 0.0650, which may attempt to impede any bearish attempts this week. The
bearishness in the market still holds, until price goes above the resistance
line at 1.0800, which is supposed to happen this week. The outlook on EURUSD
and other EUR pairs, is bullish for this week.
USDCHF
Dominant bias: Neutral
This month, USDCHF has generally moved between the support level at
0.9900 and the resistance level at 1.0100, having brought about a neutral bias
on the market. Movements above the level at 1.0000 would cause short-term
bullish signals, and movements below the level would cause short-term bearish
signals, while the long-term bias remain neutral. Price is expected to go south
this week, reaching the support level at 0.9900. Protracted selling pressure
would be needed to break that support level to the downside.
GBPUSD
Dominant bias: Bullish
As is was anticipated, GBPUSD went significantly
upwards last week; and so were other GBP pairs (EURGBP went south). Price
skyrocketed by 370 pips, reaching the distribution territory 1.2900. Price has
moved sideways since then – in what could be called a pause in the northward
journey. This week, the outlook on GBPUSD, as well as other GBP pairs, remains
bullish. So, when momentum returns to the market, it would most probably favor
bulls. Price may target the distribution territories at 1.2850, 1.2900 and
1.2950 this week.
USDJPY
Dominant bias: Bearish
This trading instrument consolidated throughout last week, in a context
of a downtrend. A movement above the supply level at 111.00 would result in a
bullish signal, as the current bearish bias is overridden. A movement below the
demand level at 108.00 would result in a clear Bearish Confirmation Pattern in
the market, as price goes further south. The outlook on USD/JPY is bearish for
this week. Therefore, southward a southward movement is more likely.
EURJPY
Dominant bias: Bearish
This cross pair made effort to go up last week, rising from the demand
zone at 115.00, and reaching the supply zone at 117.50 (a movement of 250 pips).
The bullish effort was not strong enough to override the extant bearish outlook
on the market. Price was engaged in some bearish correction on Friday; plus the
last week rise in price may turn out to be a good opportunity to sell short at
better prices. The outlook on other JPY pairs is also bearish for this week.
This forecast is concluded with the quote below:
“If we have trained
properly, if we understand our planning, if we have done our preparation, our
system execution should be a matter of routine.” –
Ken Long
Market Analyst, Trading Signals Provider and Coach
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