Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
The market essentially consolidated throughout last week – in the context
of an uptrend. Although price did not go
seriously upwards or downwards last week, that stance is going to change this
week (for price would assume a directional movement). It is much more likely
that price would continue going upwards, owing to bullish expectations on EUR
pairs. So at least 150 pips may be gained this week.
USDCHF
Dominant bias: Bearish
This pair was caught in an equilibrium movement last week (although the
overall bias on the market is bearish). Unlike the equilibrium phase of last
week, there is going to be a strong breakout this week, which would,
nonetheless, respect the ongoing bearish bias. This is because there would be
selling pressures on USDCHF, except EURUSD drops sharply. At least, a
southwards movement of 100 pips is expected from here, reaching the support
levels at 0.9700 and 0.9650.
GBPUSD
Dominant bias: Bullish
This trading instrument went upwards last week, to
test the distribution territory at 1.3600, before dropping lower. So far, the
drop has been shallow and that has not overridden the bullish bias on the
market, unless the accumulation territory at 1.3400 is breached to the
downside, which would require a heavy selling pressure. The distribution
territory at 1.3600 could be tested again. It could even be breached to the
upside.
USDJPY
Dominant bias: Bullish
Last week, USDJPY rejected further bearish effort as it went upwards by
110 pips, thereby generating a short-term “buy” signal. Price managed to close
above the demand level at 113.00 on Friday, thus making further northwards
movement a possibility. This means the supply levels at 113.50 and 114.00 could
be reached this week. Nevertheless, there is a present risk of a large pullback
on JPY pairs.
EURJPY
Dominant bias: Bullish
This cross went upwards last week, reached the supply zone at 136.50 and
ended the week in a bearish correction. Since December 15, 2017, price has
gained over 400 pips; plus it would be somewhat difficult for a lasting bearish
movement to occur in the market, as long EUR is strong. The targets for this
week are located at the supply zones of 136.50, 137.00 and 137.50. There are demand zones at 135.00 and 134.50.
GBPJPY
Dominant bias: Bullish
GBPJPY experienced a strong bullish movement last week, moving from the
demand zone at 152.00, to reach the supply zone at 153.50. It is possible that
price would gain another 200 pips this week, as price goes further northwards.
However, the more the market goes upwards, the more the chances of a bearish
correction, which may be significant enough to challenge the ongoing bullish
outlook. That is expected to happen anytime this month.
This forecast is concluded with the quote below:
“…We need a strategy
that produces profits on a consistent basis, the self-discipline that executes
that strategy and the focus to achieve our goals.” - Gabe Velazquez
Market Analyst, Trading Signals Provider and Coach
No comments:
Post a Comment