Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
EURUSD is bullish in the long-term and bearish in the short-term. Price
went upwards on Monday and Tuesday, testing the resistance line at 1.2050.
After that, a serious bearish correction took place as price went down by
roughly 200 pips after the aforementioned resistance line was touched. This
week, any rallies would meet a strong opposition at that resistance line of
1.2050. On the other hand, price may also target the support lines at 1.1850
and 1.1800.
USDCHF
Dominant bias: Neutral
This pair has been consolidating for 5 week – hence the current neutral
bias on the market. Price has oscillated between the support level at 0.9450
and the resistance level at 0.9650. For the current neutral bias to end, there
is a need for price to either cross the resistance level at 0.9750 to the
upside or move below the support level 0.9450, staying below it. Either of this
is expected to happen this week, for there would be a rise in momentum.
GBPUSD
Dominant bias: Bearish
GBPUSD is bearish in the long-term, though it
consolidated throughout last week. There is an expectation of some bearish
movement this week, which may make price test the accumulation territories at
1.2900, 1.2850 and 1.2800. However, given the current price action, some
bullish effort may enable price to go upwards by around 100 – 150 pips, but the
upwards movement would be limited.
USDJPY
Dominant bias: Bearish
USDJPY us generally bearish, but the recent bullish effort has resulted
in a threat to the bearish trend. Last week, price tested the demand level at
108.50 and then bounced upwards, reaching the supply level at 110.50. On
Friday, the market closed above the demand level at 110.00, and this has become
a threat to the bearish outlook on the market. A movement above the supply level
at 111.00 would result in a bullish bias; while a movement below the demand
level at 109.00 would lay more emphasis in the overall bearish outlook.
EURJPY
Dominant bias: Bullish
This cross pair went upwards last week to test the supply zone at 131.50.
After that, price got corrected lower, closing below the supply zone at 131.00.
However, there is still a Bullish Confirmation Pattern in the market, which
cannot be rendered invalid unless price drops by 200 pips from its current location.
The movement of the market for this week would largely be determined by
whatever happens to Yen.
GBPJPY
Dominant bias: Bearish
Over the long-term, GBPJPY is bearish, but a bullish signal has been
generated in the 4-hour chart. The bullish signal was brought about by the fact
that price gained about 230 pips last week, leading to a bullish outlook of
this week. Further weakness in Yen may enable the supply zones at 143.50,
144.00 and 144.50, to be tested this week. Nonetheless, any display of stamina
by Yen would impede the expected bullish movement.
This forecast is concluded with the quote below:
“…The real Holy Grail
in trading is proper risk management. All of the successful traders I know
follow a few specific, even conservative, risk management rules.” – Rick Wright
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