Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
The market largely consolidated last week – in the context of an uptrend.
A movement below the support line at 1.1100 could trigger a bearish signal, and
that exactly is what is expected this week, for the outlook on EURUSD (and some
EUR pairs) is bearish. The targets for the week are located at the support
lines of 1.1050 and 1.1000. However, there would not be a real threat to the
current bullish outlook until the support line at 1.1100 is breached to the
downside.
USDCHF
Dominant bias: Bearish
Despite the little bullish effort that was made in the last few days of
last week, the bias on USDCHF is essentially bearish. The bias would,
nevertheless, turn bullish, once the resistance level at 0.9900 is breached to
the upside. That is a huge possibility this week, because EURUSD is expected to
trend south (thereby helping USDCHF upwards), and CHF is also expected to be
somewhat weak, which would enable USD to rally versus it.
GBPUSD
Dominant bias: Neutral
This is a volatile market, which has put the recent
bullish outlook in a precarious situation. A protracted directional movement is
needed before a new bias can be determined in the short-term. There is a need
for the accumulation territory at 1.2600 to the breached to the downside before
the bias can turn bearish, and there is a need for the distribution territory
at 1.2900 to be breached to the upside before the bias can turn bullish. Until
one of these two things happen, the bias would remain neutral.
USDJPY
Dominant bias: Bearish
This trading instrument is trying to make some bullish effort in the
context of a downtrend. Last week, price consolidated and then made a faint
bullish effort on Thursday and Friday, as it closed above the demand level at
110.50 on Friday. The outlook on JPY
pairs is again, bearish for this week, and as a result of this, any rallies
perceived in the market should be disregarded, since they would turn out to be
short-selling opportunities.
EURJPY
Dominant bias: Bullish
The bias on EURJPY remains bullish, although that may change at any time.
Price closed above the demand zone at
124.00 and it may hit the supply zones at 124.50 and 125.00, before turning
south. Any gains in the Yen would cause JPY pairs to tumble, and EURJPY is no
exception. Nevertheless, there is a need for price to go below the demand zone
at 121.00 before the bias can really turn bearish.
This forecast is concluded with the quote below:
“I’ve reached the point where I can now
support myself with my trading profits.” – Dr
Jack Loftis
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