Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair is bearish in the short-term, for price went southwards
throughout last week, moving downwards from the resistance line at 1.2450, and
nearly touching the support line at 1.2200. The support line would be breached
to the downside, as other support lines at 1.2150 and 1.2100 are aimed at. The
outlook on EUR pairs is bearish for this week, and so, the probability of a
southwards movement is very high.
USDCHF
Dominant bias: Bearish
The outlook on the market is bearish – even in the long term. Throughout
last week, there were rally attempts in the context of a downtrend. The current
bullish effort may be temporary, because price may drop from here, to test the
support levels at 0.9350 and 0.9300 (this week). However, a movement above the
supply level at 0.9500 could result in a nice bullish outlook on the market.
GBPUSD
Dominant bias: Bearish
This market shed 300 pips last week, closing below
the distribution territory at 1.3800. Price has gone downwards by over 430 pips
since February 2, creating a Bearish Confirmation Pattern in the market. The
outlook on GBP pairs is bearish for this week (save EURGBP, which is expected
to be going upwards), and thus the accumulation territories at 1.3750, 1.3700
and 1.3650 could be reached this week.
USDJPY
Dominant bias: Bearish
USDJPY is bearish – though the market environment is quite choppy. After
several tests, price was able to go below the supply level at 108.50, and it is
currently targeting the demand level at 108.00, which could be breached to the
downside, as price goes further southwards. The bearish outlook would be intact
as long as price does not go above the supply levels 110.00 and 110.50, which
could, however, be tested.
EURJPY
Dominant bias: Bearish
Last week, there was a massive drop on this cross. Price went southwards
by 500 pips, reaching the demand zone at 132.00. On Friday, there was an
upwards bounce in the market, which should turn out to be temporary, because
this cross ought to continue its southwards journey this week. The demand zones
at 132.00, 131.50 and 131.00 could be breached to the downside. Rallies in the
market could this be ignored.
GBPJPY
Dominant bias: Bearish
Amid high volatility, the bias on GBPJPY has turned bearish. The bearishness
started as a minor bearish correction on February 2, and later became something
serious last week. Price plummeted by 600 pips, testing the demand zone at
149.00. The upwards bounce in price, which occurred on Friday, February 10,
should be disregarded, because price is most likely go further southwards
(owing to the weakness in GBP and a bearish expectation for JPY pairs). The
market can shed another 300 pips this week.
This forecast is concluded with the quote below:
“It simply doesn't
make sense to trade just one market and to hope that one is going to be the big
winner of the year. That's why trading multiple markets is so important and one
of the key principles to successful trading in the long-term.” - Marco Mayer
Market Analyst, Trading Signals Provider and Coach
Traders’ realities: Trading realities
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