Here’s the market outlook for the week:
EURUSD
Dominant bias: Neutral
The market went upwards last week, to test resistance line at 1.2450; a
level from which a bearish correction was experienced. Price came down to test
the support line at 1.2300, and then closed just above it. While the current
bias on the market is neutral, it is expected that a rise in momentum will
happen before the end of this week, which would most probably favor bearish,
because the outlook on EUR pairs is strong bearish for the week.
USDCHF
Dominant bias: Bullish
This bias on this pair is bullish – but it is currently not a strong bias.
Since testing the support level at
0.9200 (February 16), price has managed to gain about 360 pips. Last week, it
managed to stay briefly above the resistance level at 0.9550, after which it
closed below it again. A rise in the market is expected this week, which would
also be fueled by weakness in EURUSD. The resistance levels at 0.9550, 0.9600
and 0.9650 could be reached before the end of the week.
GBPUSD
Dominant bias: Neutral
GBPUSD is bearish in the short-term, but neutral in
the long-term. Last week, price nearly reached the distribution territory at
1.4250, after which it dived towards the accumulation territory at 1.4000. The
outlook on GBP pairs is bearish for this week. However it is strongly bullish
for April. While the general movement is expected to be upside in April, some
selling pressure would be witnessed this week, which could propel price towards
the accumulation territories at 1.4000, 1.3950 and 1.3900.
USDJPY
Dominant bias: Bearish
The trading instrument is bearish in the long-term, and bullish in the
short-term. There is a Bullish Confirmation Pattern in the market, at least on
a short-term basis. Price rose 220 pips
last week, to test the supply level at 107.00, and then retraced below the
supply level at 106.50. The supply level at 107.00 has thus become a major
barrier for any bullish effort, as price goes downwards towards the demand
levels at 106.00, 105.50 and 105.00.
EURJPY
Dominant bias: Bearish
This cross is bearish in the long-term, and rather neutral in the short-term.
Price is currently choppy as things are now in a range. There is a supply zone
at 132.00 and a demand zone at 130.00. As long as price saunters between these
two zones, the short-term neutrality will hold. There is a higher probability
that price will go southwards (in agreement with the long-term outlook) when a
breakout does occur.
GBPJPY
Dominant bias: Neutral
The market is choppy and without direction, although the long-term bias
is bearish. In March, what generally happened could be called a rally in a
context of a downtrend, as price moved from the demand zone at 145.00, to reach
the supply zone at 150.50. The outlook on JPY pairs is bearish for this week,
and for this month, which means long trades are not recommended (except in a
very short-term context). There will be great volatility on JPY pairs, which
would most probably favor bears.
This forecast is concluded with the quote below:
“It’s not about the
system, it’s about the trader’s ability to execute the system.” -
Curtis Faith
No comments:
Post a Comment