Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
Last week, a bullish breakout in this market put an end to the neutral
bias on it, which was in place from June 12 to 23. Price gained more than 250
pips, almost reaching the resistance line at 1.1450, but closing above the
support line at 1.1400. There is a huge Bullish Confirmation Pattern in the
market, which means that further bullish movement is a possibility.
Nevertheless, the outlook on EUR pairs is bearish for this week; just as it was
previously announced that the movements on EUR pairs would be bullish last
week. We might see a meaningful bearish run on EURUSD before the end of this
week.
USDCHF
Dominant bias: Bearish
This pair dropped precipitously last week, almost testing the support
level at 0.9550 before closing near the resistance level at 0.9600. The bias on
the market is currently bearish, but that may change once EURUSD drops before
the end of this week. There are support levels at 0.9550 and 0.9500, which may
be tested. An upwards movement may enable price to test the resistance levels at
0.9600, 0.9650 and 0.9700.
GBPUSD
Dominant bias: Bullish
GBPUSD, which normally gets positively correlated
with EURUSD, also went upwards by 310 pips last week, closing above the
accumulation territory at 1.3000 on Friday. There is a possibility of further
upwards movement, but the movement would be limited since the outlook on this
market, and certain on GBP pairs, is bearish for this week. This means that
there could be a serious bearish correction before the end of the week. As
usual, there would be strong volatility on GBP pairs in July.
USDJPY
Dominant bias: Bullish
USDJPY moved slowly northward last week, testing the supply level at
112.50, but being unable to close above it. Since June 14, the market has
gained about 340 pips while moving northwards slowing and gradually. The trend
in the market is bullish, but that may soon be put to an end, for the outlook
on the market is bearish for this week and for this month. JPY pairs are also
expected to go bearish this week and in July.
EURJPY
Dominant bias: Bullish
Unlike USDJPY, which moved upwards gradually and slowly last week, EURJPY
cross moved upwards rapidly and significantly. Price went upwards from the
demand zone at 124.50, and tested the supply zone at 128.50 (a movement of
about 400 pips). There is a significant Bullish Confirmation Pattern in the
market, and short trades are currently not encouraged until there is a deep correction
in the market, which would eventually happen, owing to a bearish outlook on JPY
pairs for the month of July.
This forecast is concluded with the quote below:
“Independence has a
slightly different meaning when it comes to the world of trading, but it is an
important one. Trading gives us the independence from having to have a “9-5”
job. It gives us the freedom to work from just about anywhere in the world
(thanks, in part, to technology). We can choose what we want to trade, how much
we want to trade and even take breaks whenever we want. It’s one of the best
“jobs” you can have.” – TradingEducators
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