Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market is bearish in the short-term. Since testing the resistance
line at 1.2550 on February 16, price has gone south by more than 250 pips (now
barely below the resistance line at 1.2300). This week, the outlook on EUR
pairs is bullish. While the support lines at 1.2250 and 1.2200 could be tested,
it is expected that a considerable rally will start before the end of the week,
and that is something that could overturn the current short-term bearish bias.
USDCHF
Dominant bias: Bullish
The pair is bullish in the short-term. After the support level at
0.9200 was tried on February 16, the market gained 200 pips. It tested the
resistance level at 0.9400 on Thursday, and then retraced a bit. The resistance
level at 0.9400 could be tested again, and even another resistance level at
0.9450. However, an eventual rally on EURUSD would force the current upwards
movement to reverse, thus threatening the short-term bullish bias.
GBPUSD
Dominant bias: Neutral
There was no strong directional movement here last
week. Since February 16 price has been going gradually lower (rendering the
bullish outlook that was formed before February 16 invalid). Since the
downwards movement is not strong, the market has essentially become neutral in
the near-time. However, the neutrality would soon become a thing of the past,
because a strong momentum is expected in the market, which would most probably
favor bulls. The outlook on GBP pairs is mostly bullish for March 2018,
although that does not rule out bearish corrections in certain cases.
USDJPY
Dominant bias: Bearish
The market was bearish in the long-term. A rally happened last week from
Monday to Wednesday, but it was checked by the bearish correction that took
place on Thursday and Friday. There are support levels at 106.50, 106.00 and
ultimately at 105.50. These support levels will try to prevent further bearish
correction, and that is something that could bring about another rally in the
market, which would become considerable this time.
EURJPY
Dominant bias: Bearish
This cross is strongly bearish, going downwards in a steady manner since
February 2, and losing at least, 600 pips since then. Nonetheless, the
southwards journey will soon be over, as a strong rally is expected, which
would eventually remove the current Bearish Confirmation Pattern in the market.
The outlook on JPY pairs is bullish for this week, and for the month of March.
So, short trades are not advisable.
GBPJPY
Dominant bias: Neutral
This trading instrument is bearish in the long-term, but neutral in the
short-term. The market has gone bearish by 700 pips since February 2 – but it
has only moved sideways in the last two weeks. Since the low of 148.00 was
tested, price has failed to go significantly lower. A base has already been
formed and price could be seen moving upwards, away from the base. This month,
the market is expected to go upwards by at least, 500 pips, and that will
effectively bring about a bullish bias.
This forecast is concluded with the quote below:
“True trading is
actually speculation (managed risk). The speculator is willing to accept the
risk of price fluctuation in return for the greater leverage that comes with
that risk in the hopes of earning a greater profit.”
– Andy Jordan
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