Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
EURUSD went downwards by 170 pips last week. It has gone downwards by 430
pips since April 19. There is a Bearish Confirmation Pattern in the market and
it is supposed to continue going lower and lower, reaching the support lines at
1.1900, 1.1850 and 1.1800. USD is supposed to continue being strengthened, and
so long trades are not currently recommended, until it is clear there is a
change in the market.
USDCHF
Dominant bias: Bullish
This pair has normally been going upwards as EURUSD is going downwards.
Price has gained over 800 pips since February 16 (it gained 130 pips last week).
The great psychological level at 1.000 has eventually been reached and a lot of
activity has started around that level, as bears are struggling to prevent
bulls from pushing price above the level. However, bulls will eventually win
the struggle, and enable price to stay above the psychological level at 1.0000,
as another resistance level at 1.0050. The USD reigns.
GBPUSD
Dominant bias: Bearish
Since testing the distribution territory at 1.4350
on April 17, Cable has nosedive, shedding 850 pips since then (including 250
pips that were shed last week). Price tested the accumulation territory at
1.3500 on Friday, but closed above it. The outlook on GBP pairs is bearish for
this week, and thus Cable should continue its downwards exploration, reaching
the accumulation territories at 1.3500, 1.3450 and 1.3400.
USDJPY
Dominant bias: Bullish
The bias on the market is bullish, but the trend is in a precarious
position. Price did not go upwards significantly last week, neither did the
bearish correction that followed help the matter. Once the supply level at
110.00 was tested, price got corrected by 100 pips, moving briefly below the
demand level at 109.00 and then closing above it on Friday. Since the bullish
bias is in a precarious situation, any movement below the demand level at
108.00 will result in a clear bearish signal.
A movement to the downside is very much likely this week.
EURJPY
Dominant bias: Bearish
This trading instrument has dropped by 300 pips since April 26. Roughly
250 pips were shed last week, owing to the weakness in EUR and a show of energy
in JPY. There is a huge Bearish Confirmation Pattern in the market, and price
is expected to continue going southwards, owing to the bearish outlook on JPY
pairs this week. The demand zones at 130.00, 129.50 and 129.00 would be
reached.
GBPJPY
Dominant bias: Bearish
A very weak GBP has met a strong JPY, and the result was that price went
out of balance, in favor of bears. There is a huge drop in the market (nearly
300 pips), as the demand zone at 147.00 was nearly tested. There is a bearish
outlook on this cross, and further southwards journey is expected. There could
be transitory upwards bounces in the market, but they would serve as good
short-selling opportunities.
This forecast is concluded with the quote below:
“(Good) Trading happens outside your comfort zone… What I love about
trading is the ongoing challenge and it makes me happy to know that I’m
competing against some of the brightest minds on earth in the markets. They do what
works.” - Marco Mayer
