Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair is bullish in the short-term, but neutral in the long-term.
Price rose from the support line at 1.1750 and tested the resistance line at
1.1900 (a movement of 150 pips). However, price closed below the resistance
line on Friday. Bulls might still be able to sustain the short-term bullishness
in the market, till the end of the year. The support line at 1.1750 would
resist a bearish bias from forming this week.
USDCHF
Dominant bias: Neutral
This trading instrument did not make any significant movement last week,
neither is it expected to make any significant movement this week (because
volatility would thin out). Price is thus expected to oscillate between the
resistance level at 0.9950 and support level at 0.9800 within the next several
trading days. However, a breakout will occur early January, which would result
in a directional bias, ending this current neutrality in the market.
GBPUSD
Dominant bias: Neutral
The GBPUSD consolidated throughout last week, forming
no directional movement. The price has generally swung between the distribution
territory at 1.3450 and the accumulation territory at 1.3300. Generally the
current neutrality will exist as long as price swings between the distribution
territory at 1.3500 and the accumulation territory at 1.3250. Such is the
condition that will exist for the rest of this year.
USDJPY
Dominant bias: Bullish
There is a short-term bullish bias on the USDJPY, but it is not strong. Price gained 100 pips last week, from the
demand level at 112.50 to the supply level at 113.50. After the supply level at
113.50 was tested, price retraced towards the southwards, but that is not a
threat to current short-term bias. This week, a big price swing is not expected
unless an unexpected fundamental figure comes out from the blue.
EURJPY
Dominant bias: Bullish
There is a Bullish Confirmation Pattern in the market. Here, price rose
up more than 200 pips (from the demand zone at 132.50 to the supply zone at
134.50). The supply zone at 134.50 was briefly surmounted before price went
below it on December 22. The bullish bias is anticipated to hold out for the
rest of the year, in spite of any bearish attempts along the way. The demand
zones at 133.50, 133.00 and 132.50 would impede bearish pulls in the market.
GBPJPY
Dominant bias: Bullish
The GBPJPY cross rose upwards last week, and then started to consolidate
on Thursday (till the end of the week). Further sideways movement in the
market, especially for a few more trading days, would result in a neutral bias.
A movement to the upside (towards the supply zone at 152.50) would help
strengthen the current bullish bias; and a strong movement to the downside
(towards the demand zone at 149.50) would erase the bullish bias.
This forecast is concluded with the quote below:
“One of my first jobs
was at a bank working in credit risk management, and it was there that I
discovered my love for financial markets and trading in general. I’ve always
loved strategy games and for me, trading is the ultimate way to formulate real
strategy. If a trade works well for you, you get a reward…” - Andrés Padrones
Market Analyst, Trading Signals Provider and Coach
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