Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
The bullish bias on EURUSD was challenged last week, as price was pulled
towards the support line at 1.1800. However, bulls managed to push price
upwards, thus saving the bullish bias. Price is currently close to the
resistance line at 1.1900, and it is bent on breaching it to the upside as soon
as possible. The resistance line at 1.2000 is the ultimate target; although
bulls would meet a fierce opposition at the resistance line.
USDCHF
Dominant bias: Bearish
From Monday to Wednesday, this pair went upwards in the context of a
downtrend, testing the price level at 0.9850, going above it briefly and then
coming downwards to move below it. USDCHF cannot have a meaningful rally as
long as EURUSD is able to showcase its stamina. The rally that took place in
the first few days of last week has proven to be a good opportunity to sell
short at a better price, as price plummeted on Friday, putting more emphasis on
the ongoing bearish outlook. Further bearish movement is expected this week.
GBPUSD
Dominant bias: Bullish
The persistent bullish effort on Cable - against all
odds – has already paid off. The bullish upwards movement in the market has
been slow, gradual, and steady. Since November 14, price has gained more than
400 pips, roughly testing the distribution territory at 1.3549. Although price
has retraced lower since then, that is just a temporary thing, it would go
upwards again, targeting the distribution territories at 1.3500, 1.3550 and
1.3600.
USDJPY
Dominant bias: Bearish
After testing the supply level at 114.50, this trading instrument went
downwards by 340 pips in November, creating a Bearish Confirmation Pattern in
the market. However, the rally that took placed almost throughout last week nearly
posed a threat to the bearishness in the market. The reneging rally met a
challenge on Friday and the market pulled back considerably. This week, price
could possible reach the demand levels at 112.00 and 111.50. But that does not
completely rule out the possibility of some rally.
EURJPY
Dominant bias: Bullish
This cross is quite choppy, showing some indecision in the long-term, and
showing some bullishness in the short-term. The market went downwards on
November 27 and 28, and then started going upwards on November 29 (after
testing the demand zone at (132.00). The market reached the supply zone at
134.00 and then closed just below the supply zone at 133.50. It is thus possible
for the supply zones at 133.50, 134.00 and 134.50 to be reached this week. As
long as the demand zone at 131.50 is not breached to the downside, this
short-term bullish bias cannot be rendered invalid.
GBPJPY
Dominant bias: Bullish
GBPJPY rallied massively last week, putting an end to the recent
indecision that had held out for weeks. From the demand level at 147.00, price
shot skywards by 540 pips, before the slight bearish retracement that was
witnessed on December 1. This week, bulls would be able to push price further
upwards. The targets are the supply zones at 151.50, 152.00 and 152.50 would
easily be reached, enabling the ongoing bullish bias to become stronger.
This forecast is concluded with the quote below:
“Learning the business
of trading is basically no different from learning any other business. Winning
means learning major guidelines and concepts that you repeat so often in your
own behavior that they become good habits. These good habits then become
automatic behavior patterns, which are formed as brain pathways by the rewards
you get for trading well...” – Joe Ross
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