Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
Although the bias on this pair is bullish, bulls are getting tired of
pushing price upwards. Price consolidated last week, moving between the
resistance line at 1.1200 and the resistance line at 1.1300, before it closed
below the resistance line at 1.1200 on Friday. The outlook on EUR pairs is
bearish this week, and that may cause the market to assume a bearish journey,
as the support lines at 1.1150 and 1.1100 are targeted.
USDCHF
Dominant bias: Bearish
USD/CHF moved between the resistance level at 0.9700 and the support
level at 0.9600 last week. On Friday, an attempt was made to go above the
resistance level at 0.9700, but price was forced to close below it. In spite of
a faint rally that was seen last week, the dominant bias on the market remains
bearish. Further bearishness is expected this week, as USD would be weak
against some currencies like CHF, NZD and AUD. The only factor that could cause
a noteworthy bullish run in the market is a major pullback on the EURUSD.
GBPUSD
Dominant bias: Bearish
It was formerly forecast that the outlook on GBP
pair is bearish for June. GBP pairs went through major pullbacks last week as
EURGBP shot skywards. That event was what put an end to the short-term
neutrality on GBPUSD, which has been moving sideways before the pullback that
happed on June 9. That event has caused a Bearish Confirmation Pattern to form
in the market as price lost more than 200 pips (the initial loss was about 300
pips but price bounced upwards). This week, the bearish outlook on the market
remains valid as further bearish movement is anticipated.
USDJPY
Dominant bias: Bearish
This trading instrument went downwards on Monday and Tuesday; and then
made effort to go upwards on Wednesday, Thursday and Friday. All this happened
in the context of a downtrend, which is expected to continue this week, for the
outlook on JPY pair is very bearish for the week. Thus, the demand levels at
109.50. 109.00, and 108.50 would be tested this week, as price goes southwards.
EURJPY
Dominant bias: Bearish
The EUR/JPY cross is bullish in the long-term (though the long
term-bullishness is now being threatened), and bearish in the short-term. Price
dropped 150 pips last week, to test the demand zone at 123.00, after which it
moved sideways for the rest of the week. Things are currently volatile, but
further bearish movement is anticipated (just like on other JPY pairs); and
thus, the demand zones at 123.00, 122.50 and 122.00 could be breached.
This forecast is concluded with the quote below:
“If you have a strategy
that works, stick to it.” – James Altucher
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
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