EURUSD
Dominant
bias: Neutral
This pair experienced a great deal of
volatility last week. Price went up on Monday, and then dropped seriously from Tuesday
to Thursday. On Friday, price spiked upwards and immediately following that,
got corrected to the downside. The high volatility and short-term swings in the
market have cancelled any directional bias on the market, not because of any
equilibrium conditions, but because neither bulls nor bears are able to
dominate protractedly in spite of the fact that momentum is currently high.
This pair would be characterized by high momentum this month, and it would be
difficult for it to rally protractedly as long as USD is strong.
USDCHF
Dominant bias: Bullish
Despite the fact that bearish attempts
caused the support levels at 0.9550 to be tested a few times last week, USDCHF
was able to maintain its bullishness. Since the support level at 0.9550 has
become a strong barrier to bearish effort, it would be safe to assume that the
bullish outlook on the pair will remain valid as long as price is able to stay
above that support level. The resistance level at 0.9700 is also a big
challenge to bulls, for price could not break above it last week in spite of
sincere effort by the bulls. A break above that resistance level would thus
result in a smooth continuation of the extant bullish trend. The outlook would
go bearish as soon as the support level at 0.9550 is breached to the downside.
GBPUSD
Dominant
bias: Neutral
Cable
has not been able to go below the accumulation territory at 1.5450 or go above
the distribution territory at 1.5650 for weeks; therefore, the accumulation
territory at 1.5450 and the distribution territory at 1.5650 could serve as
boundaries for short-term swing trades. In this week or next, price could move
out of these boundaries, thereby giving way to a serious directional movement.
In this month, GBP (and other GBP pairs) would most probably be weak in most
cases, though there could be occasional bullish attempts on the way.
USDJPY
Dominant bias: Neutral
This currency trading instrument has been
moving sideways since the middle of July 2015. A break above the supply level at 124.50 could
result in a Bullish Confirmation Pattern in the market, and a break below the
demand level 123.00 could also result in a Bearish Confirmation Pattern in the
market. This month, it is highly possible that Yen would gain lots of strength,
thus causing JPY pairs to tumble. The strength in the Yen may start before the
end of this week, and therefore, it is possible that USDJPY will go below the
supply levels at 123.00 and 122.00 this week or next week.
EURJPY
Dominant bias: Bullish
Although there is a measure of strength in the EURJPY
cross, the situation looks delicate. The
supply zone at 137.50 could challenge further rally in the market, and the
possibility of a bearish movement starting anytime is high because the outlook
on JPY pairs for this month of August is bearish.
This forecast is concluded with the quote below:
“Now I embrace
the uncertainty and design my processes so as to have the potential to thrive
in the uncertainty. I want to accept winners and cut losses short in an
uncertain world, and I want to do it repeatedly without desire to know the
future.” – Markham Gross
Source: www.tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
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