Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair is bullish in the medium-term, but neutral in the short-term. Price
tested the support line at 1.0850, closing above the support line at 1.0900 on
Friday. A movement above the resistance line at 1.1000 would strengthen the
existing bullish bias, while a movement below the support line 1.0700 would
threaten it. This week, further pullback is possible, but EURUSD would not go
really bearish until the support line at 1.0700 is breached to the downside.
USDCHF
Dominant bias: Neutral
USDCHF moved upwards by 230 pips last week, almost testing the resistance
level at 1.0100, and then pulled back towards the support level at 1.0000. The
upwards movement of the first few days of last week has overridden the last
short-term bearish signal, and the pullback that was seen on Friday has
scuttled the bullish effort of last week. Both the bull and the bear would not
gain upper hand until price goes seriously out of balance. A protracted
movement is needed to form a directional outlook.
GBPUSD
Dominant bias: Bullish
The outlook on the Cable remains bullish, though
price consolidated throughout last week. Further consolidation could result in
a neutral outlook. The accumulation territory at 1.2850 has been tested and it
may be breached to the downside. The current price action shows more and more
noticeable weakness in the bullish trend, thereby increasing chances of a large
pullback this week, especially when the accumulation territories at 1.2850 and
1.2800 are breached to the downside.
USDJPY
Dominant bias: Bullish
This trading instrument initially went upwards last week, briefly going
above the demand level at 114.00. Price got corrected lower by 80 pips on Thursday
and Friday. The bias on the market is bullish, and it would remain so as long
as price does not go below the demand level at 112.00. There is a possibility
that the supply levels at 113.50, 114.00 and 114.50 would be targeted this
week.
EURJPY
Dominant bias: Bullish
EURJPY went sideways last week, in the context of an uptrend. There was a
movement between the demand zone at 123.00 and the supply zone at 124.50. A
rise in momentum is anticipated this week, which would emphasize the current
Bullish Confirmation Pattern in the market, especially when the supply zone at
125.00 is overcome. The bullish bias would be jeopardized when price goes below
the demand zone at 122.00.
This forecast is concluded with the quote below:
“I’ve always believed
that on every trader's journey, emotions are nice companions but lousy
guides…This phrase is meant to remind us that life would be pretty darned
boring if we never experienced any emotions. But more importantly in trading,
decisions made when we are in a non-productive emotional state will likely
produce results we don’t like. That’s where a great trading system comes to the
rescue. It gives us a framework to calmly and coolly evaluate situations and
make the right moves…” - D.R. Barton, Jr.
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