Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
EURUSD is in a bearish trend – which started about 2 weeks ago. Price went
downwards by roughly 160 pips last week, having gone down by 250 pips since
October 15. Further bearish movement is anticipated, that would move price
towards the support lines at 1.1350 (which was previously tested and will be
tested again), 1.1300, and 1.1250. However, a very strong selling pressure is
needed to break the support line at 1.1250 to the downside.
USDCHF
Dominant bias: Bullish
There remains a Bullish Confirmation Pattern on USDCHF, which has been in
place for at least, 4 weeks. Since the current bullish movement began in
September 21, price have moved forwards by about 470 pips. Last week, there was
no significant bullish movement, and price closed on a bearish note on Friday,
which was presumed to be a temporary reversal in the context of an uptrend. The
bullish journey is expected to resume soon.
GBPUSD
Dominant bias: Bearish
The movement on Cable is nearly similar to the movement on EURUSD – the only
difference being that the movement on the former is faster than the movement on
the latter. Since October 12, price has dropped at least, 450 pips, as the
market makes high lows and lower lows. Higher lows allow traders to enter short
at better prices, and it is a pattern that is expected to continue as Cable
targets the accumulation territories at 1.2800, 1.2750 and 1.2700.
USDJPY
Dominant bias: Bearish
The market is bearish, especially in the short-term; and in spite of
bulls’ effort, a bearish signal has already been generated and this will become
more significant as the market goes further southwards (a trend that is
expected this week and next week). There would be pauses and transitory rallies
on the way, but the demand levels at 111.50, 111.00 and 110.50 would be
reached.
EURJPY
Dominant bias: Bearish
This is a classic example of a bearish movement. Since September 21,
price has dropped roughly 600 pips, thus giving a rise to a strong Bearish
Confirmation Pattern. The market will continue its drop this week, as JPY continues
to exert its energy. There is going to be lots of opposition to the bearish
trend once price reaches the demand zone at 126.50, nonetheless. But with
enough selling pressure, the demand zone will be breached to the downside.
GBPJPY
Dominant bias: Bearish
There was a massive drop on the GBPJPY, which happened last week, and
which ended the protracted ranging movement that was seen in the latter part of
September 2018 and the early part of October 2018. The last week drop was over
400 pips, as the weakness in GBP was too favorable to the stoing JPY. Price closed
on a bearish note on Friday, following some shallow upwards bounces. Further
drop of at least, 250 pips is anticipated this week.
This forecast is concluded with the quote below:
“Markets go up and
markets go down. Sometimes they go up a lot and sometimes they go down a lot.”
– Chris Tate
