Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market is bearish in the long-term, and bullish in the short-term. Last
week, after testing the support line at 1.1600, price went upwards by 150 pips,
to test the resistance line at 1.1750. Price can still go further upwards
towards the resistance lines at 1.1800 and 1.1850. However, a strong buying
pressure is needed to reach the resistance line at 1.1850. A southwards
movement from here would render this expectation invalid.
USDCHF
Dominant bias: Neutral
The market is virtually flat. Since the past two weeks, price has moved
between the support level at 0.9850 and the resistance level at 1.0000. As long
as price moves between the aforementioned support and resistance levels, things
will remain neutral. This week, it is not likely that price would break the
support level at 0.9850 to the downside; or break the resistance level at
1.0000 to the upside, because much volatility is not expected in the market
this week. However, before the end of the month, a rise in momentum is
expected, which would create a directional bias.
GBPUSD
Dominant bias: Bearish
GBPUSD Is bearish in the long-term, and bullish in
the short-term, just like EURUSD. Since testing the accumulation territory at
1.3100, price has gone upwards by roughly 200 pips, closing above the
accumulation territory at 1.3250 and aiming the distribution territory at
1.3300. Nonetheless, the major outlook remains bearish, which means the market
needs to gain, at least, another 300 pips, before the bias can turn bullish.
USDJPY
Dominant bias: Bullish
Since March 26, the market has been going northwards slowly and
gradually. Right now, the bullish bias is weak, although bears have not been
able to push price lower significantly. There was an attempt to go south last
week, after the supply level at 111.00 was tested. Price closed slightly below
the supply level at 110.50, and it may go towards the demand level at 110.00,
where bearish effort should be contained, just for the bullish bias to be
saved.
EURJPY
Dominant bias: Neutral
This cross is bullish in the short-term, and neutral in the long-term. Some
bullish effort started around the end of June, and it has been upheld till now.
In the short-term, price could move upwards and downwards, within the supply
zone at 131.00 and the demand zone at 128.00. Price may not be able to go beyond
these boundaries because much volatility is not expected this month, unless
some fundamental figure causes a radical change in the market.
GBPJPY
Dominant bias: Bullish
Since June 28, this trading instrument has been going upwards, leading to
a bullish bias in the short-term (a Bullish Confirmation Pattern). Last week
ended on a bullish note and it is probable that price would continue going
upwards, reaching the supply zones at 147.00, 147.50 and 148.00. There would be
a reversal along the way, which would, nevertheless, not be serious enough to invalidate
the ongoing bullish bias.
This forecast is concluded with
the quote below:
“But in trading, often
the best solution is the simplest...” - Michael Carr
