Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The currency pair opened up the market with a bullish candlestick but
after its four-hour formation started falling to the support price line at
around 1.1654. After a while, price strived to push upwards towards the first
immediate resistance found at 1.1750. Soon afterward, the pair started
reversing again with a formation of a top shadow Japanese candlestick and three
top shadow Japanese bearish candlesticks and those formations eventually led
pair to be driven past the last support line to find another support at 1.1620.
The assumption remains that in the next trading days, decent bearish entries
are most likely to be favored.
USDCHF
Dominant bias: Neutral
This currency pair opened with a bearish Japanese candlestick within its
four-hour trading period. The next candlestick formation, made the pair to see
different of upward movement corrections that have now created first resistance
at around 0.9980. The last support is located at 0.9900. The pair seems to have
made the two levels its trading confinement area for now. As a result, the bias
in this market is neutral. Nevertheless, the strong probability is been put in
the southbound movements of this pair.
GBPUSD
Dominant bias: Bearish
The bias is neutral in the short-term, but bearish
in the long-term. Some months back, this pair was seen trying to break past the
strong resistance of 1.4380 in the long-term trading chart. But in April, it
clearly resumed a decline until now. This week, it opened with a bullish
candlestick, and a few hours later, it started reversing southbound in other to
prepare a grand to locate a genuine resistance level at 1.3215 of the market.
It has now been closely observed that bullish reversal movements are making
better entries for the bears to come into play in the market. Another
–important fact of this market, is that its support level has been located at
1.3065.
USDJPY
Dominant bias: Bearish
The market is bearish, especially in the short-term. A “sell” signal has
already been generated. This pair managed briefly to rally from the last week
lowest price towards the distribution territory at 110.55. It made certain northward
driving attempts but the bears’ presence made them abortive. There has been
much stronger market driving strength possessed by the bears currently. The
bullish market will briefly experience an up-rise in its movements over a short
time a bit above the resistance level at 111.55 and will eventually allow a
free fall of the pair past the accumulation territory of 110.50. But a strong
break out above the distribution territory of 111.55 could lead to driving the
pair further a bit above the distribution of 112.00.
EURJPY
Dominant bias: Bearish
There has been a steady decline in the market of this pair since the
beginning of this week. And, this declining state seems to be in a continuation
of the last week. Being as it is, this currency pair has now been found
surrendering easily to the bears each time they make a presence in the market.
The bulls have only been making little ineffective efforts that the bears have
been easy taking for a serious ride in their direction. This current bearish
directional movement is expected to continue in the coming week. Though, a
slight ranging movement cannot be overruled between the distribution territory
of 130.00 and the accumulation of 129.00.
GBPJPY
Dominant bias: Bearish
The weaknesses of the GBP have made the JPY remained stronger in the
market of the currency pair. Since last week, there have strong fall-offs in
the market value of GBPJPY. It has strived to retrace towards the resistance
level at 146.55. Thereafter, it resumed falling gradually southwards to
encounter a support level at 145.20. The market price action may soon
experience a range bound for a while. More bearish movements are still been
expected to play out in this market as the horizontal line at 147.00 tends to
remain the critical resistance level that the bulls are not expected to drive
the market past easily in the next coming week..
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