Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair is bullish, though it only consolidated last week, moving between
the support line at 1.1700 and the resistance line at 1.1850. A movement above
the aforementioned resistance line would put more emphasis on the bullish bias,
while a movement below the support line could result in a threat to the bullish
bias. On the other hand, further consolidation for the next several trading
days would bring out a neutral bias on the market. No matter what happens this
week, EUR would be seen going upwards versus certain currencies like AUD and
NZD.
USDCHF
Dominant bias: Bearish
This is essentially a bear market, although there was a bearish effort
between July 25 and August 8, it was not enough to override the overall bearish
bias. After testing the resistance line at 0.9750, further bullish effort was
rejected as price came down by 250 pips, closing below the resistance line at
0.9650 on Friday. This week, the market would endeavor to target the support
levels at 0.9550 and 0.9500 (even possibly exceeding it).
GBPUSD
Dominant bias: Bearish
In the context of a downtrend, GBPUSD moved sideways
last week. Price oscillated between the distribution territory at 1.3050 and
the accumulation territory at 1.2950. A movement below the accumulation
territory at 1.2950 would put more emphasis on the bearish mode of the market,
while a movement above the distribution territories at 1.3050, 1.3100 and
1.3150 would result in a new bullish signal. This week, GBP also would be seen
moving upwards versus certain currencies like AUD and NZD.
USDJPY
Dominant bias: Bearish
From the August high of 114.47, this trading instrument has dropped by
550 pips, testing the demand level at 109.00, and closing above the demand
level on Friday. There is a strong Bearish Confirmation Pattern in the market,
and thus, it is logical to conclude that price would continue going downwards
this week, aiming at the demand levels of 109.00, 108.50 and 108.00. There
could be transitory upward bounces along the way.
EURJPY
Dominant bias: Bearish
The long-expected bearishness on EURJPY is here. Last week, price dropped
250 pips, ending the recent neutrality on the market (which was in place for
roughly three weeks), and bringing about a bearish bias. On Friday, price
bounced upwards, closing slightly above the demand zone at 129.00; thus
creating a wonderful opportunity to sell short at a better price, while the
outlook on the market remains bearish. This week, price is expected to go
lower, reaching the demand zones at 128.50, 128.00 and 127.50
This forecast is concluded with the quote below:
“All good traders are
also good record keepers. If they win a trade, they want to know exactly why
and how… Traders who win consistently treat trading as a business.” - Matt Blackman
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