Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair is neutral in the short-term, but bullish in the long-term.
Price moved sideways from Monday to Thursday, and then broke upwards on Friday.
Price gained roughly 150 pips that day,
closing above the support line at 1.1900. The bullish movement could take price
towards the resistance lines at 1.1950 and 1.2000. The resistance line at
1.2000 would try to impede any bullish movement beyond it, for the outlook on
EURUSD is bearish for this week (following some visible bullish effort).
USDCHF
Dominant bias: Neutral
USDCHF is bearish in the long-term, and neutral in the near-term. The
market consolidated mostly last week, save for the bearish breakout that was
witnessed on August 25. Since the movement of this pair is dictated by whatever
happens to EURUSD, it is expected that further downwards movement would be
witnessed as long as EURUSD goes upwards. This can enable price to go below the
support lines at 0.9550 and 0.9500, thus ending the ongoing near-term
neutrality. A sharp drop in EURUSD price would bring about a meaningful rally
on USDCHF.
GBPUSD
Dominant bias: Bearish
Since the beginning of this month, GBPUSD has lost
about 450 pips, going southwards. There is a Bearish Confirmation Pattern in
the market, which could not be threaten by the rally that took place at the end
of last week. In fact, the rally would act as a good opportunity to sell short
at slightly higher prices, for the outlook on GBPUSD is bearish for this week.
In September, GBP pairs would be mostly bearish (though some rallies would be
witnessed in certain cases).
USDJPY
Dominant bias: Bearish
This trading instrument was caught in an equilibrium phase last week –
though the major outlook on the market is bearish. The weakness in USD has
prevented a meaningful rally in the market, and bullish effort would
continually be thwarted as price goes further downwards. Further bearish
movement is anticipated this week, for the demand levels at 109.00, 108.50 and
108.00 would be aimed. Rallies should either be ignored or approached with
caution.
EURJPY
Dominant bias: Bullish
Both in the short-term and the long-term, this cross is bullish. Some
conspicuous rally attempt was started at the beginning of last week, and that
culminated in a strong rally that was seen on Friday, as price closed at
130.45. A “buy” signal has already been generated, and that may enable price to
go upwards by another 200 pips this week. However, the outlook on JPY pairs is
bearish for this week and for September, and thus, whatever goes up on EURJPY
cross will eventually come down.
GBPJPY
Dominant bias: Bearish
GBPJPY was quite choppy in July. Nonetheless a smooth bearish movement began
in August, and price has been going steadily southwards since the beginning of
the month, losing 700 pips. On Thursday and Friday, some bullish correction was
seen, but that has paled into insignificance when compared to the overall
bearish bias on the market. This week, price is supposed to continue its
bearish movement. The demand zones at 140.50, 140.00 and 139.50 would be
reached. They may even be exceeded.
This forecast is concluded with the quote below:
“Trading is a
collaborative endeavour between you and the market. The market offers up
opportunities on a regular never ending cycle and you decide what you will do
with these opportunities. There is no enemy in this transaction; it is a
symbiotic relationship and a failure to accept this is at the root of many of
the problems that traders have.” – Chris Tate
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