Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
EURUSD, which has generally been bullish this year, went upwards by 100
pips last week, testing the resistance line at 1.1750. Some attempts were made
to breach the resistance line to the upside, but to no avail. However, the
resistance line remains under siege and it may be breached to the upside, as
other resistance lines at 1.1800 and 1.1850 are targeted. The outlook on EUR
pairs is bearish for this week, but bullish for August 2017; so we may see some
considerable correction before the end of the week.
USDCHF
Dominant bias: Bullish
Perpetual weakness in CHF has helped USDCHF to generate a clean bullish
signal (most CHF pairs also skyrocketed while the CHF/JPY plummeted). Price
gained about 250 pips last week, and it is currently volatile. The market would
continue going upwards as long as CHF shows weakness. This is a classical
example of when both USDCHF and EURUSD go into a positive correlation; i.e.,
they both go upwards. The USDCHF normally goes into opposite direction to
EURUSD, but this time around, the case is being influenced by exponential
weakness in CHF. Price may go further upwards to test the resistance levels at
0.9750 and 0.9800. However, CHF would regain its losses, starting from this
week and throughout August; something that would send CHF pairs (including
USDCHF) southwards.
GBPUSD
Dominant bias: Bullish
GBPUSD was able to retain its bullishness last week,
trying to go upward just like EURUSD has done, since both of them normally go
into positive correlation. The distribution territory at 1.3150 was tested
repeatedly last week, and it might be breached to the upside this week, as
other distribution territories at 1.3200 and 1.3250 are aimed. Although GBP
pairs would experience mixed results in August, GBPUSD would not really become
bearish as long as it stays above the accumulation territory at 1.2850.
USDJPY
Dominant bias: Bearish
In this market, this month has been bearish so far. Last week was also characterized by
bearishness in spite of bull’s desperate effort to push price upwards, which
made price tested the supply level at 112.00, before price went downwards to
close below the demand level at 111.00. The next target is the demand level at
110.50, which would easily be breached as other demand levels at 110.00 and
109.50 are targeted. The outlook on JPY pairs is bearish for this week and for
August. Therefore, long trades are not recommended.
EURJPY
Dominant bias: Neutral
This currency trading instrument has been consolidating for about two
weeks, resulting in short term neutrality. A movement above the supply zone at
130.50 would bring about a Bullish Confirmation Pattern in the market; while a
movement below the demand zone at 128.00 would result in a bearish bias. This
is what is expected to happen within the next several trading days.
Nonetheless, bear would eventually become a winner in August.
This forecast is concluded with the quote below:
“It doesn’t matter how
often a method or system wins, what matters is the bottom line: does the method
or system make money for you?! If it does, then stick with the bottom line.” - Andy Jordan
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