EURUSD
Dominant
bias: Bullish
Last week witnessed the greatest
volatility in the markets since January 15, 2015. Between August 19 – 24, price
went upwards by 680 pips, topping at the resistance line of 1.1700. Immediately
the resistance line was tested, price began to retrace steadily and gradually.
From the weekly high of 1.1700, price has gone downwards by 520 pips; thereby
threatening the recent bullish bias. The threat to the bullish bias is so
serious that a movement below the support line at 1.1100 would ultimately
result in a bearish outlook.
USDCHF
Dominant bias: Bearish
From August 19 – 24, this pair plunged by
500 pips in what can be called the biggest USDCHF move in the last few months.
From August 25 till now, price has nevertheless, rallied by over 300 pips,
which is another threat to the existing bearish outlook on the market. In case price
goes above the resistance level at 0.9700, things would turn cleanly bullish;
whereas failure to do that could strengthen the existing bearish outlook. Since
the outlook on CHF is bearish for the month of September, bulls would be having
some difficulties pushing USDCHF upwards.
GBPUSD
Dominant
bias: Bearish
When
the hope of a weak GBPUSD was almost dashed for the month of August 2015, the pair
eventually became weak. This formerly trudging pair managed to test the
distribution territory at 1.5800 before bulls lost all their power. From that
distribution territory, price nosedived by 450 pips, reaching the accumulation
territory at 1.5350. This means that bears are the overall winners on GBPUSD in
the month of August, since their action overturned all the bullish gains for the
month. In September, we will see very serious volatility on GBPUSD (and of
course on all GBP pairs), coupled with fast bearish and bullish movements.
USDJPY
Dominant bias: Bearish
The expectation of a bearish USDJPY pair
for the month of August eventually materialized; and so was the bearish outlook
on some other JPY pairs. From August 19 – 24, price plummeted by 800 pips,
going briefly below the demand level at 116.50. Since then, price has been
making a noteworthy bullish recovery - a movement of 500 pips. Should the price
move further upwards by another 200 pips this week, the bearish outlook would
be rendered ineffectual. However, an upward movement of 200 pips could be
difficult to achieve because it is expected that most JPY pairs would be
bearish for most of the time in the month of September (with a few exceptions);
and USDJPY would not be different.
EURJPY
Dominant bias: Bearish
Owing to the strength in Yen, which was already
anticipated, EURJPY fell sharply, resulting in a Bearish Confirmation Pattern.
Though there is an ongoing struggle between bull and bear, price was able to
attain the demand zone at 135.50 last week, in a downward movement of 300 pips.
The demand zone at 135.50 was battered several times without being permanently
penetrated. That demand zone ought to be breached this week or next so that the
bearish bias can continue to make sense.
This forecast is concluded with the quote below:
“The market
provides the greatest opportunity on earth for financial reward. It also
teaches great lessons… It is the greatest game on earth.” – Mark Minervini (a trading legend)
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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