Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair consolidated in the first few days of last week, and then went
slightly upwards. On Friday, price closed above the support line at 1.1250,
targeting the resistance line at 1.1300. The outlook on EUR pairs, however, is
bearish for this week, which means that EURUSD could experience a serious
pullback before the end of the week. Before that happens, price would continue
making some visible bullish effort.
USDCHF
Dominant bias: Bearish
USDCHF went bearish last week, losing at least, 110 pips. The market has
lost 460 pips since May 11, and that has caused a Bearish Confirmation Pattern
to form in the chart. On June 2, price closed below the resistance level at
0.9650, going towards the support level at 0.9600, which is the first target
for the week. The second target is the support level at 0.9550. The market is
expected to continue going further and further southward, until EURUSD would
experience a clear pullback, something that would cause USDCHF to spring
upwards.
GBPUSD
Dominant bias: Bullish
GBPUSD is bullish in the long-term, but neutral in
the short-term. In the short-term, price simply fluctuated without taking a
specific direction. The situation may change this week as price goes above the
distribution territory at 1.3050 to continue the long-term bullish bias; or
goes below the accumulation territory at 1.2700, to form a new bearish bias.
Price must thus go above the aforementioned distribution territory (1.3050) or
accumulation territory (1.2700) before a directional bias can occur.
USDJPY
Dominant bias: Bearish
There is a bearish signal on this currency trading instrument, and price
may continue going downwards to test demand levels at 110.00, 109.50 and
109.00. Price went sideways last week, but became conspicuously bearish on
Friday. Rally attempts may happen along the way, but they are expected to be
transient (not being able to form a bullish bias on the market), because the
general outlook on this trading instrument, as well as other JPY pairs, is
bearish for June.
EURJPY
Dominant bias: Bullish
The EUR/JPY cross is bullish in the long-term, and neutral in the
short-term. Price generally went upwards in May; though it is yet to do
anything noteworthy this month. The demand zone at 123.50 was tested last week before
price went upwards by 180 pips, going above the demand zone at 125.00 briefly
and then closing below it on Friday. As long as EUR is strong in itself, this
cross would maintain some form of bullishness; otherwise it would eventually tumble.
This forecast is concluded with the quote below:
“If you haven’t already
experienced sideways market types for yourself, you will soon discover that
they occur a lot more frequently and go for longer periods of time than most
new traders realize. If you know how to
trade in sideways conditions, you will find plenty of opportunity and you’ll
also dramatically boost your chances for long term trading success.” –
Dr. Van Tharp
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
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