Here’s the market outlook for the week:
EURUSD
Dominant bias: Neutral
The bias is neutral in the long-term term, and bearish in the short-term.
Price went southwards last week, losing up to 130 pips, after testing the
resistance line at 1.2400. The support line at 1.2250 was almost tested, but
price closed close to the resistance line at 1.2300. Owing to the short-term
bearishness in the market, further southwards journey is anticipated, which may
push price towards the support lines at 1.2250, 1.2200 and 1.2150.
USDCHF
Dominant bias: Bullish
The Bullish Confirmation Pattern in this market was partly brought about
by the anticipated stamina in Greenback. Since testing the support level at
0.9200 on February 16, price has gained 550 pips (gaining 220 pips in this
month alone), closing around the resistance level at 0.9750 on Friday. Price should
continue going further upwards as EURUSD is pushed further southwards. The
resistance levels at 0.9800 and 0.9850 are the targets for this week.
GBPUSD
Dominant bias: Bearish
The Cable consolidated in the first week of April,
went upwards in the second week, and came downwards heavily in the third week (last
week). After testing the distribution territory at 1.4350, price has nosedived by
350 pips, reaching the accumulation territory at 1.4000, and closing slightly
below it. The bias on the market has now turned bearish, and that may be upheld
this week, as the accumulation territories at 1.3950, 1.3900 and 1.3850 are
aimed.
USDJPY
Dominant bias: Bearish
The trading instrument is bearish in the long-term, and bullish in the
short-term. After price rammed into the demand level at 105.00 on March 23, it
has gone upwards by 280 pips since then. Price closed above the demand level at
107.50 on Friday and it may even reach the supply levels at 108.00 and 108.50
this week…. Before the anticipated reversal occurs. The reversal may be strong
enough to take price towards the demand level at 107.50.
EURJPY
Dominant bias: Bullish
This is a bull market in the near-term, but the bullishness in the market
is very weak. Price did almost nothing last week, save some consolidating
movement throughout the week. The consolidation may continue this week, but a
breakout is imminent, which would most probably favor bears. Thus, the demand
zones at 132.00, 131.50 and 131.00 could be reached, which may effectively
challenge the recent bullishness in the market.
GBPJPY
Dominant bias: Bearish
There is now a Bearish Confirmation Pattern in the market, which was
forcefully brought about by the large pullback that occurred in the market. Roughly
280 pips were shed as price closed below the supply zone at 151.00 on April 20,
2018. It is expected that further southward movement would play itself out this
week, because the outlook on JPY pairs is somewhat bearish for the week. This
means the accumulation territories at 150.50, 150.00 and 149.50 would be
reached easily.
This forecast is concluded with the quote below:
“Accept that you can
trade, it really isn’t as cognitively difficult as people make out. It is
emotionally and psychologically difficult but it doesn’t require much brain
power despite what you may be told. Therefore, it is within the realm of most
to be able to understand the basics of trading.” –
Chris Tate
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
