Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair is bullish in the long-term, but neutral in the short-term (for
price has been going sideways for about two weeks). Price has been moving to
and fro, within the resistance line at 1.1850 and the support line at 1.1650.
As long as price moves to and fro within the resistance and support lines, the
short-term neutrality would hold out. A movement above the resistance line of
1.1850 would make the long-term bullish bias more conspicuous, while a movement
below the support line of 1.1650 would result in a bearish outlook. A movement
below the aforementioned support line is more likely, owing to the expected
weakness in EUR this week.
USDCHF
Dominant bias: Neutral
USDCHF has become a neutral market, as it has not assumed a protracted
directional movement since early August. For a directional movement to start,
there is a need for price to go above the resistance level at 0.9750 (thus
creating a Bullish Confirmation Pattern), or the price would go below the
support level at 0.9600 (thus creating a Bearish Confirmation Pattern). A
movement to the upside is more likely this week, owing to an expectation of
weakness in CHF and strength in USD.
GBPUSD
Dominant bias: Bearish
This market went downwards last week, testing the
accumulation territory at 1.2850 several times, but not able to breach it to
the downside. The outlook on GBP pairs is bearish for this week, and for this,
the bearish journey on GBPUSD would continue as the accumulation territory at
1.2850 is breached to the downside. The next targets would be accumulation
territories at 1.2800, 1.2750 and 1.2700.
USDJPY
Dominant bias: Bearish
From August 14 to 16, there were bullish attempts in this market, as
price went upwards by 160 pips, almost reaching the supply level at 111.00. From
the high of last week (110.93) price went down by 220 pips, moving briefly
below the demand level at 109.00 and then closing above it on Friday. The
bearish journey may continue this week, and therefore, the demand level at
109.00, 108.50 and 108.00 could be the next targets.
EURJPY
Dominant bias: Bearish
What happened on EURJPY last week was nearly similar to what happened on
USDJPY. In the first few days of last week, price rallied in the context of a
downtrend, testing the supply zone at 130.00 and then dropping smoothly by 200
pips, to test the demand zone at 128.00. Price has closed above the demand
level at 128.00, but it is likely that it would test it again – probably
breaching it to the downside - as it ontinues to go southwards this week.
This forecast is concluded with the quote below:
“20+ years ago I knew
I wanted to live life on my terms, I just didn’t know how to create the income
that would allow that. That desire drove my focus on trading and still does
today.” – Sam
Seiden,
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
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