Here’s the market outlook for the week:
EURUSD
Dominant bias: Neutral
Irrespective of the bullish attempt that was witnessed last week, the
outlook on EURUSD remains neutral. The neutrality has been ongoing for over 2
months, and the bullish attempt that happened last week pales into
insignificance when compared to the overall outlook on the market. Price currently
oscillates between the support line at 1.2200 and the resistance line at
1.2400. There is a going to be a directional bias once that support line or
that resistance line is breached. However, a breach of the support line at
1.2200 is much more likely.
USDCHF
Dominant bias: Bullish
There is some form of bullishness in this market. Since the support level
at 0.9200 was breached on February 16, price has moved upwards by 440 pips,
closing above the support level at 0.9600 on Friday. This week is supposed to
be bullish, because USD will likely gain some stamina against certain currencies
like EUR, CHF, AUD and NZD (with the exception of GBP). The first object of
attack this week is the resistance level at 0.9650.
GBPUSD
Dominant bias: Bullish
The market gained 220 pips last week, almost
reaching the distribution territory at 1.4300, and getting corrected lower, to
close below the distribution territory at 1.4250. There is a Bullish
Confirmation Pattern in the market, and price is supposed to go seriously upwards
again, breaching the distribution territories at 1.4250, 1.4300 and 1.4350 to
the upside. Short trades are not yet recommended.
USDJPY
Dominant bias: Bearish
The trading instrument is bearish in the long-term, and bullish in the
short-term. There is a weak short-term bullishness owing to the fact that price
made some effort to go upwards last week, gaining only 80 pips. Price managed
to briefly breach the supply level at 107.50, but it could not close above it
on Friday (it closed below it). However, price would be able to go above the
supply level at 107.50; even reaching other supply levels at 108.50, 109.00 and
109.50.
EURJPY
Dominant bias: Bearish
This cross is bearish in the long-term, and now bullish in the short-term.
It has gained roughly 250 pips this month, and it can gain another 250 pips
before the end of the month. That is something that can bring about a long-term
bullish outlook on the market as it goes through the supply zones at 133.00,
133.50 and 134.00, even exceeding those supply zones as price goes further and
further northwards.
GBPJPY
Dominant bias: Bullish
There is a Bullish Confirmation Pattern in the market. The market gained
roughly 500 pips in March and it has gained over 400 pips this month, closing
above the demand zone at 152.50 on Friday. The outlook on GBP/JPY and most
other JPY pairs, remains bullish for this week. The price is expected to reach
the supply zones at 153.00, 153.50 and 154.00: the targets that could even be
exceeded.
This forecast is concluded with the quote below:
“The markets never
reward desperation. They only reward clear thinking, discipline and courage.” –
Louise Bedford
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
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