Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market is bearish, but price was not able to go downwards seriously
last week. Thus the market is bearish in the long-term, but neutral in the short-term.
A strong opposition was particularly met at the support line at 1.1550, after
which price bounced off the support line. However, that would turn out to be an
opportunity to go short at a better price, for the outlook on EUR pairs is
bearish for this week. One major task for bears is to break the support line at
1.1550 to the downside, as price goes further downwards.
USDCHF
Dominant bias: Neutral
The bias on this pair has become neutral, especially in the face of the
fact that USDCHF was characterized by trendlessness throughout June. Last week,
price went upwards, to move above the resistance level at 0.9950, and then
moved below that resistance (now close to the support level at 0.9900). As long
as EURUSD remains weak, there will not be a significant bearish movement on
USDCHF pair this week (although the pair will eventually give way to bearish
pressures before the end of July).
GBPUSD
Dominant bias: Bearish
The market went smoothly downwards, testing the
accumulation territory at 1.3050 (over 200 pips of bearish movement). After
testing the accumulation territory at 1.3050, price rallied seriously and
closed above the accumulation territory at 1.3200. The outlook on GBP pairs is
bearish for this week, so a movement towards the accumulation territories at
1.3200, 1.3150 and 1.3100 are highly anticipated. There could even be a
movement below the accumulation territory at 1.3100.
USDJPY
Dominant bias: Bearish
A Bullish Confirmation Pattern is present on the USDJPY. In the
short-term, price rallied from the demand level at 109.50, to close above the
demand level at 110.50 on Friday. This week, there could be further upwards
movement towards the supply levels at 111.00 and 111.50. However, price is not
expected to go further upwards than that because the outlook on certain JPY
pairs is bearish for the month of July.
EURJPY
Dominant bias: Bearish
This cross is bearish in the long-term, and bullish in the short-term. In
short-term, a movement above the demand zone at 129.00 has resulted in a ‘buy”
signal, which could enable price to reach the supply zones at 129.50 and
130.000, However, any movement to the upside would be limited, partly because
of the ongoing weakness in EUR, which means price could also be retraced lower
before the end of this week.
GBPJPY
Dominant bias: Bearish
Owing to the present Bearish Confirmation Pattern in the chart, the bias on
this trading instrument is bearish, but the strong bullish surge that was witnessed
on Friday has posed a threat to the bearish outlook. On Thursday and Friday,
price gained 250 pips, after testing the demand zone at 144.00. Should price
gain another 200 pips this week, things will turn completely bullish. On the
other hand, a downward movement from here would save the bearish bias.
This forecast is concluded with
the quote below:
“There are
opportunities… It’s a matter of seeking them out, in the biggest playground of
all... the markets.” – Louise Bedford
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