Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
On EURUSD, bull was the clear winner last week. Price went upwards by 210
pips, breaking the multi-month high at 1.1600 and closing above the support
line at 1.1650. Since June 27, price has gained 470 pips, and there is still
more room for upwards movement, for price could reach the resistance lines at
1.1700, 1.1750 and 1.1800 this week. Nevertheless, it should be noted that, the
more the market goes upwards, the more the chances of a reversal (which could
happen before the end of the month).
USDCHF
Dominant bias: Bearish
This pair went down about 200 pips last week, making bear the clear
winner. Since May 12, the market has gone down by more than 600 pips, leading
to a huge Bearish Confirmation Pattern in the market. On Friday, price went
briefly below the support level at 0.9450, and later closed above it. This
week, further downwards movement is expected and the support levels at 0.9450,
0.9400, and 0.9350 could be tried. In case USD gains a considerable amount of
stamina, there would be an upwards bounce in the market.
GBPUSD
Dominant bias: Neutral
Cable is bullish in the long-term, but neutral in
the short-term. Price tested the distribution territory at 1.3100, and then
began to be corrected downwards last week, reaching the accumulation territory
at 1.2950. A movement above the distribution territory at 1.1300 would help
restore the bullish confident; while a movement below the accumulation
territory at 1.2800 would result in a bearish bias. A movement between the
distribution territory at 1.3050 and the accumulation territory at 1.2900 would
keep the short-term neutrality in the market.
USDJPY
Dominant bias: Bearish
There is a bearish signal on USDJPY. Price went southwards by 140 pips
last week (having gown downwards by 330 pips since July 11). On Friday, the
demand level at 111.00 was tested – it would be breached to the downside this week.
Other bearish targets are located at the demand levels of 110.50, 110.00 and
109.50. There is a strong bearish outlook on JPY pairs this week, and
therefore, long trades are not recommended on USDJPY.
EURJPY
Dominant bias: Bullish
The bias on this cross is bullish, though price only consolidated last
week. Further consolidation can result in a short-term neutrality. One reason
why the bullish bias has held out so far is the stamina in EUR itself. This
week, there are possibilities that the supply zones at 130.50 and 131.00 can be
tested this week. On the other hand, there could be a strong pullback before
the end of the week (or the month), owing to a bearish outlook on JPY pairs for
the rest of the month.
This forecast is concluded with the quote below:
“Trading is a great
business for those who master it, and those who master it are traders who have
mastered themselves.” – Joe Ross
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