Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair experienced a strong bearish movement last week, dropping 230
pips, and nearly reaching the support line at 1.2050. However, price closed
above the support line at 1.2100, and that might be a good opportunity to sell
short at a better price, for price may continue going downwards this week,
because USD keep on being strong. The support lines at 1.2100, 1.2050 and
1.2000 are the next targets. EUR pairs will also experience strong volatility
in May.
USDCHF
Dominant bias: Bullish
This trading instrument went upwards last week (gaining 150 pips). Over
300 pips have gained in the last two weeks, and this is just the beginning,
because the northwards journey would continue as a result of the stamina in
USD. The resistance level at 0.9900 has been tested and it would be tested
again, and get breached to the upside. That is when price would target
additional resistance levels at 0.9950, and ultimately 1.0000.
GBPUSD
Dominant bias: Bearish
GBPUSD shed 250 pips last week, and it has shed more
than 600 pips since April 17. There is a huge Bearish Confirmation Pattern in
the market, which portends possibility of further southwards journey. The
accumulation territories at 1.3750, 1.3700 and 1.3650 could be reached before
the end of the week. The accumulation territory at 1.3750 was tested last week,
and it would be tested again this week, for the outlook on GBP pairs remains
bearish. GBP pairs will also experience high volatility in May.
USDJPY
Dominant bias: Bullish
Price started rallying last month, and it rallied considerably last week.
The bias on the market has thus turned completely bullish as price neared the
supply level at 109.50, and it is now close to the demand level at 109.00… However, price may not be able to go protractedly
upwards again, because there is a very strong bearish outlook on JPY pairs for
this week, and for May 2018. Long positions should be liquidated because bulls
will suffer seriously in May.
EURJPY
Dominant bias: Bullish
This cross did not made any strong directional movement last week. Price
made a weak bullish effort on Monday and Tuesday, consolidated on Wednesday and
then got a bearish correction on Thursday and Friday. Although the ongoing bias
is bullish, bulls are obviously getting weaker and weaker, showcasing their lack
of interest in pushing price upwards. The recent bearish correction may
eventually turn out to be something significant. A large movement is expected
on EURJPY in May, and it would mostly favor bears.
GBPJPY
Dominant bias: Bearish
Just like EURJPY, albeit in a significant mode, this cross pair made a
clear bullish effort on April 23 and 24, then ranged on April 25; only to dip
on April 26 and 27. The dip on April 27 was strong enough to enforce a
formation of a Bearish Confirmation Pattern in the market. Given the weakness
in GBP and a bearish outlook on JPY pairs (Yen would become strong), this cross
would continue to go further southwards, reaching the demand zones at 150.00,
149.50 and 149.00 this week.
This forecast is concluded with the quote below:
“What you need is the
safety of a detailed trading plan: specific guideline to follow. Making a plan
follows the wisdom of any job being 80% preparation and only 20% execution. The
more clearly the plan is laid out, the easier it is to follow. And when the
plan is easy to follow, it's likely that you'll stick with it. You'll be
disciplined and in control of your emotions and thought processes.” –
Andy Jordan (Source: Tradingeducators.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
