Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market is bearish in the short-term, for price went southwards
throughout last week, moving briefly below the support line at 1.1750 and then
closing above that support line on Friday. Other support lines at 1.1700 and
1.1650 could be tested this week, provided there is a serious selling pressure
in the market. There are resistance lines at 1.1850, 1.1900 and 1.1950, which
should impede serious rallies.
USDCHF
Dominant bias: Bullish
This pair is bullish in the short-term, as it went northwards throughout
last week, moving briefly above the resistance level at 0.9950 and then closing
below that resistance level on Friday. Other resistance levels at 1.0000 and
1.0050 could be tested this week, provided there is a serious buying pressure
in the market. There is also a strong possibility that the pair would plummet
seriously before the end of this week, owing to a possible display of stamina
in CHF. Most major currencies would drop against CHF this week (and USD
possibly included).
GBPUSD
Dominant bias: Bullish
The bias on the Cable is bullish, but the bias is
very weak, owing to some bearish attempt to pull down the price last week. A
movement below the accumulation territory at 1.3250 would result in a bearish
signal being generated, while a movement above the distribution territory at
1.3550 would result in putting more emphasis on the recent bullish signal. One
of these scenarios would materialize this week.
USDJPY
Dominant bias: Bullish
From Monday to Wednesday, USDJPY went downwards; but it started moving
upwards on that very Wednesday, to gain 150 pips, and to test the supply level
at 113.50 by Friday (closing around that supply level). This has resulted in a
Bullish Confirmation Pattern in the market, which means price would break the
supply level at 113.50 to the upside, as it targets other supply levels at
114.00 and 114.50.
EURJPY
Dominant bias: Neutral
This trading instrument is quite choppy and completely neutral. There are
wild upswings and downswings in the market as it is completely directionless.
The current market condition would continue for some more days until price is
able to stay above the supply zone at 134.50, or below the demand zone at
131.50. This is a condition that requires a high volatility and a perpetual
movement in one direction. The condition would be met before the end of this
month.
GBPJPY
Dominant bias: Bullish
The outlook on this cross is bullish. From November 4 to 6, the cross
went downwards, and then rallied. The rally has saved the ongoing bullish
outlook on the market, despite the bearish correction that took place on
November 8 (which might turn out to be an opportunity to buy long at a better
price). This week, price would go upwards again, reaching the supply zones at
152.00, 152.50 and 153.00.
This forecast is concluded with the quote below:
“Sometimes I wonder
what would have happened if I hadn’t learned how to trade. What future would
have been blocked off?” – Louise Bedford
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