Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair did nothing significant last week: It only moved sideways.
However, the bullish bias on the market has been maintained because bulls have
been able to their own weight, and when a breakout occurs, it would take price
above the resistance lines at 1.2500 and 1.2550. Possible pullbacks may not
take price below the support lines at 1.2300 and 1.2250; otherwise a bearish
bias would form.
USDCHF
Dominant bias: Bearish
USDCHF also consolidated last week, not going downwards significantly and
not going upwards either. The bias on the market remains bearish, and there is
a possibility that the support levels at 0.9200, 0.9150 and 0.9100 could be
tested this week (when volatility arises). The resistance levels at 0.9400,
0.9450 and 0.9500 should hinder any serious rallies that may happen. Any breach
of the resistance level at 0.9500 would result in a bullish bias.
GBPUSD
Dominant bias: Bullish
Cable moved downwards on Monday and Tuesday, went
upwards on Wednesday and Thursday, and then went downwards again on Friday. The
outlook on the market is bullish, but the current strong pullback in the market
has become a kind of threat to the bias. A breach of the accumulation territory
at 1.3950 would result in a bearish signal, while a movement above the
distribution territory at 1.4350 would help strengthen the current bullish
bias.
USDJPY
Dominant bias: Bearish
This trading instrument is bearish in the long-term, and bullish in the
short-term. A short-term “buy” signal has been generated, because price has
risen by 180 pips after testing the demand level at 108.50. This could be a
start of a strong bullish journey, since price may rise further towards the
supply levels at 110.50, 111.00 and 111.50. This even would result in an end to
the current bearish bias.
EURJPY
Dominant bias: Bullish
Price made some faint bearish effort on January 29 and 30, as it briefly
went below the demand zone at 134.50. However, the situation changed as a
strong rally began on January 30. Price gained 300 pips, bringing about a bullish
signal, and ending the recent consolidation in the market. The possibility of
price going further upwards is very high this week. The next targets are the
supply zones at 137.50, 138.00 and 138.50.
GBPJPY
Dominant bias: Bullish
There is a Bullish Confirmation Pattern on GBPJPY (although the market
environment is quite volatile). In the first few days of last week, price took
a dip, only to rally massively in the middle of the week. The pullback that
occurred on Friday would turn out to be another opportunity to buy long and
ride the market further north. It is important to note that the bias on JPY pairs
is very bullish for this week – short trades are not currently advisable.
This forecast is concluded with the quote below:
“...Stay calm, try
your best, and accept where the markets take you. Ironically, if you can
identify and control what you can (such as risk management and a sound trading
strategy), and accept what you cannot (the outcome of a trade), you will feel
calm and be able to trade in a peak performance mindset. And the calmer you
feel, the more open you will be to seeing the markets as they are, rather than
what you want them to be.” – Joe Ross (Source: Tradingeducators)
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