Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
The bias on this pair is currently bullish. Price managed to go upwards
last week, reaching the resistance line at 1.0800, but not able to stay above
it. Several failed attempts were made, to breach the resistance line to the
upside, and the goal must be achieved to save the current bullish bias. A movement
above the resistance line at 1.0800 would reinforce the bullish bias – and
failure to do that would eventually bring about a large pullback in the market.
USDCHF
Dominant bias: Bearish
This market has been trudging south since the beginning of this year.
From early January till now, price has gone down roughly 350 pips. As long as
EURUSD goes north, USDCHF will continue to go south, for only a serious
pullback on EURUSD can bring a meaningful rally on USDCHF. CHF is expected to
become strong this month; plus the resistance level at 1.0000 would endeavor to
impede rallies in the market. It would be difficult for a strong rally to take
place.
GBPUSD
Dominant bias: Bullish
GBPUSD made attempt to go upwards last week, but further upwards movement
was rejected at the distribution territory at 1.2700. From there, price got
corrected by over 200 pips, to close above the accumulation territory at 1.2450
on Friday. An upward movement from here would save the recent bullish bias,
while a downwards movement from here would render the bullish bias invalid.
Generally, GBP pairs are supposed to trend seriously upwards this month.
USDJPY
Dominant bias: Bearish
The current bias on this currency trading instrument is bearish, because
price has been trending downwards since the beginning of this year. Price has
come down more than 500 pips since January, and it is approaching major demand
levels. The demand levels at 112.00 and 111.00 could be tested on breached,
temporarily. There is a strong possibility that JPY pairs would rally this week
(most probably within Monday to Wednesday), and should that happen, USDJPY
would rally seriously.
EURJPY
Dominant bias: Neutral
The bias on this cross pair is essentially neutral, though there are
bearish signals in small timeframes. The neutral bias can be ended by the
expected rally on JPY pairs, which would also carry this cross pair along.
Price might temporarily reach the demand zones at 121.00, 120.50 and 120.00. On
the other hand, a serious rally would push price upwards by a minimum of 200
pips this week.
This forecast is concluded with the quote below:
