Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The pair is bearish in the short-term, which is still a weak bias. Price
went downwards last week, moving briefly below the support line at 1.2250, and
closing above it on Friday. There are resistance lines at 1.2300, 1.2350 and
1.2400. Things will go bullish when the resistance line at 1.2400 is breached
to the upside. There are support lines at 1.2250, 1.2200 and 1.2150. Things
will go strongly bearish when the support line at 1.2150 is breached to the
downside.
USDCHF
Dominant bias: Bullish
The market remains bullish in the short-term (and its fate is largely subject
to whatever happens to EURUSD). Price went upwards last week, almost reaching
the resistance level at 0.9650, and then getting corrected lower. The
short-term bullishness will be rendered ineffectual only when price goes below
the support level at 0.9500. On the other hand, a movement above the resistance
level at 0.9700 will result in a stronger bullish bias on the market.
GBPUSD
Dominant bias: Neutral
The market is neutral because there was no
significant directional movement last week. Price hovers between the
distribution territory at 1.4200 and the accumulation territory at 1.3900.
Price would need to go above that distribution territory or below the
accumulation territory, for a directional bias to form, but that would require
a big momentum to happen. A possibility of a movement to the upside is very
strong because the outlook on GBP pairs is very bullish for this week.
Therefore a rally is likely in the market.
USDJPY
Dominant bias: Bearish
The trading instrument is bearish in the long-term, and bullish in the
short-term. In the short-term, price gained 180 pips from the low of last week,
reaching the supply level at 107.50. Then there was a slight bearish correction
in the market, which would eventually turn out to be an opportunity to buy long
at better prices. A rally is very likely this week, which would push price
upwards by 200 pips. This movement would be strong enough to override the
long-term bearishness in the market.
EURJPY
Dominant bias: Bearish
This cross is bearish in the long-term, and rather neutral in the short-term.
Another reality is that the market condition is currently choppy, but that
might come to an end when a rally occurs in the market. There is a strong likelihood
of a rally here, owing to a bullish expectation on JPY pairs for this week. The
supply zones at 131.50, 132.00 and 132.50 could be reached when a bullish
movement begins.
GBPJPY
Dominant bias: Bullish
GBPJPY cross remains bullish, especially in the medium-term. The market gained
roughly 500 pips on March and it has gained over 200 pips this month, closing above
the demand zone at 150.50 on Friday. There is a Bullish Confirmation Pattern in
the market, and thus, price is expected to continue going upwards this week,
reaching the supply zones at 151.00, 151.50 and 152.00. The supply zone at
152.00 could even be exceeded.
This forecast is concluded with the quote below:
“You have what it
takes to be a great trader! You may know this already or you may be curious to
find out if you really do have what it takes.” –
VTI
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
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