Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The pair has been going southward since September 25, having lost about
200 pips. Price moved briefly below the support line at 1.1700, but closed
above it on Friday. However, rallies in this kind of market situation often
bring good opportunities to sell short at slightly higher prices, and that is
exactly what is expected. Another opportunity to go short would emerge this
week, as price turns southwards again.
USDCHF
Dominant bias: Bullish
USDCHF has managed to stay bullish for the past few weeks – although
price has not gone upwards significantly either. The market was trudging upwards,
sauntered above the resistance level at 0.9800, but eventually closed below it
on October 6. This week, USDCHF would maintain its bullishness, but it would
not be able to move northward significantly until CHF is weakened. The
bullishness would also be sustained as long as EURUSD remains bearish.
GBPUSD
Dominant bias: Bearish
This market has been going downwards in the past two
weeks, and price has come down by 470 pips since then (having come down by 320
pips last week). There is a huge Bearish Confirmation Pattern in the market,
and the accumulation territory at 1.3050 has already been tested. The bearish
movement can continue this week as other accumulation territories at 1.3000 (a
strong accumulation area), 1.2950, and 1.2900 are tested. However, there could
be some meaningful rally before the end of the week.
USDJPY
Dominant bias: Bullish
Albeit it consolidated throughout last week; the outlook on this market
remains bullish. There could soon be an end to the short-term consolidation, as
price goes above the supply level at 114.00, or below the demand level at
111.00. A movement above the supply level at 114.00 would help strengthen the
existing bullish bias; while a movement below the demand level at 111.00 would
threaten it.
EURJPY
Dominant bias: Bullish
This cross is basically bullish in the long-term, but neutral in the
short-term. Price did practically nothing last week, save moving sideways in
the context of an uptrend. Nonetheless, a closer look at the market reveals
that bears are about to gain upper hands, and thus, price could go towards the
demand zones at 131.50 and 131.00 this week. The bias would not turn bearish
until another demand zone at 130.00 is breached to the downside.
GBPJPY
Dominant bias: Bearish
GBPJPY moved south by about 360 pips last week, resulting in a Bearish
Confirmation Pattern in the market. The outlook on the market remains bearish
for this week, as price goes towards other demand zones at 147.00, 146.50 and
146.00 (and possibly exceeding them). However, there could be a serious rally
before the end of the week, which cannot render the current bearish bias
invalid unless the market rallies by a minimum of 400 pips.
This forecast is concluded with the quote below:
“As traders, we are
the ultimate rain makers. We are the producers. We are the profit seekers. We
live by our wits, making decisions that others fear. We claim our freedom and
provide an unparalleled lifestyle for those we love.” – Louise Bedford
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