Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair consolidated throughout last week, moving between the
resistance line at 1.2300 and the support line at 1.2150. The resistance line
at 1.2300 was tested unsuccessfully, and it is unlikely that price would stay
above it, even if it tested again. There is going to be a directional movement
this week, which would most probably favor bears, for the outlook on EUR pairs
is bearish for the week.
USDCHF
Dominant bias: Bearish
USDCHF went further southwards last week, testing the demand level at
0.9550, prior to the upwards bounce that occurred on Friday. Because of the
expected weakness in EURUSD, it is unlikely that price would be able to go
below the support level at 0.9550. Rather, price could continue going upwards,
reaching the resistance levels at 0.9650, 0.9700 and 0.9750 within the next
several trading days.
GBPUSD
Dominant bias: Bullish
GBPUSD went upwards last week, having gained roughly
400 pips since January 11. The market moved above the distribution territory at
1.3900 and later closed below it on Friday. There is currently a bullish bias
on the market, which would be overturned once price goes below the accumulation
territories at 1.3500 and 1.3450 (which would require a very strong selling
pressure). The outlook on GBP pairs is bearish for this week.
USDJPY
Dominant bias: Bearish
This trading instrument is in a bearish mode. The shallow rally that was
in the middle of last week, turned out to be a nice opportunity to go short. It
is much more likely that price would continue going southwards this week,
because there could be some weakness in USD. The demand levels at 110.50, 110.00
and 109.50 could be reached. On the other hand, a rally can meet some adamant
impediment around the supply levels at 111.50 and 112.00.
EURJPY
Dominant bias: Bullish
The cross is bullish but it is quite choppy in the short-term. Should the
demand zone at 134.00 get breached to the downside, the bias would turn
bearish. In case price is able to go above the supply zone at 136.50, the next
target would be another supply zone at 137.00 (and the recent bullish bias
would become stronger). A movement to the upside is more likely, owing to a
bullish outlook on some JPY pairs.
GBPJPY
Dominant bias: Bullish
Despite the bearish movement that happened between January 8 and 11, this
cross has been able to go upwards in a noteworthy manner last week. Between
Monday and Thursday, price moved upwards by 250 pips, and then got corrected on
Friday. This week, further bullish movement may enable price to reach the
supply zones at 154.00, 154.50 and 155.00. There could be additional bearish
corrections along the way; but they should be temporary, posing no significant
threat to the bullishness in the market.
This forecast is concluded with the quote below:
“And remember, having
a working business plan will put you in the elite company of the top traders
that are already living their promise.” – Dr. Van Tharp
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