Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
In the long-term, the pair is bearish, and last week was bearish too.
Price dropped by 140 pips, moved briefly below the support line at 1.1650, and
then closed above it. This week, there could be a test of the support lines at
1.1650 and 1.1600, but they may not be broken to the downside because price has
a high probability of going northwards, reaching the resistance lines at
1.1700, 1.1750 and 1.1800.
USDCHF
Dominant bias: Bullish
Last week, owing to a sudden surge of stamina in USD, the pair
skyrocketed, reaching the high of 1.0066. The test of that high is significant
because the last time price reached that level was May 2017. Since the high of
the year (1.0066) was tested, price has shown a sharp reversal, shedding 60
pips and closing at 1.0002 on July 13. Price might attempt to go further
upwards, but it would encounter stiff opposition around the high of 1.0066.
Even there will be stiffer opposition above the high of the year, like the
resistance levels at 1.0150, 1.0200 and 1.0250. Movement towards the south may
be more visible this week.
GBPUSD
Dominant bias: Bearish
In the long-term, Cable is bearish, and last week
was bearish too. From the distribution territory at 1.3350, price dropped by
250 pips, and almost touched the accumulation territory at 1.3100, and then
closed above the accumulation territory at 1.3200. This week, there could be a
test of the accumulation territories at 1.3200 and 1.3150, but they may not be
broken to the downside because price has a high probability of going
northwards, reaching the distribution territories at 1.3250, 1.3300 and 1.3350.
USDJPY
Dominant bias: Bullish
Last week was bullish. In fact, the market has been going upwards since
March 26, and it has gained close to 800 pips. A clean bullish run has taken
price towards the supply level at 112.50 and there is a lot of trading activity
around that level, as bears are making attempt to effect a bearish reversal.
There are demand levels at 112.00, 111.50 and 111.00. However, price could go
upwards to reach the supply levels at 113.50, 114.00 and 115.00.
EURJPY
Dominant bias: Bullish
This cross has become a bull market in the medium-term. Price gained 180
pips last week (it has gained over 650 pips since May 25), and managed to
closed above the demand zone at 131.00. Short trades are not recommend in this
market, owing to the Bullish Confirmation Pattern in it, and owing to the bullish
outlook on EUR for this week and next. Price is thus expected to continue going
upwards, reaching the supply zones at 131.50, 132.00 and 132.50.
GBPJPY
Dominant bias: Bullish
GBPJPY is a volatile market, though with a Bullish Confirmation Pattern
present in it. This month has been bullish so far (the bullish movement started
late June and it has been upheld till now). Having gained 500 pips since June
28, there is still much room for bulls to shine. This week, another 200 pips
can be gained amid high volatility. Nonetheless, this does not rule out possibility
of bears overpowering bulls along the way.
This forecast is concluded with
the quote below:
“You should not draw
the conclusion that winning traders are reckless. They aren't. They approach
trading systematically. They develop clearly defined trading plans and they
trade them. They wait for market conditions that increase their odds of
success. But most of all, they have a positive attitude. They know that if they
do their homework and make enough trades, they will take home a profit.”
– Joe Ross
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