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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
EURUSD dropped below the support line at 1.0850 last week, but it could not stay below that line. From there, price rallied by over 150 pips, testing the resistance line at 1.1000. The overall bias remains bearish and it would be so, unless price is able to breach the resistance lines at 1.1100 and 1.1200 to the upside; a feat that would not be easy for bulls to achieve because the current bearish outlook may last longer than imagined. Without the aforementioned resistance lines being breached to the upside, any upwards bounces (like the current one) would be taken as short-selling opportunities.
USDCHF
Dominant bias: Bullish
This pair first went upwards last week, moving above the resistance level at 0.9500. However, as it was mentioned last time in May 25 – 29 forecasts, CHF gained considerable stamina and this halted further upwards movement on USDCHF. This is what is partly responsible for the visible bearish correction in this market. The stamina in CHF can also be seen on other CHF pairs(for example, check GBPCHF, CHFJPY, NZDCHF etc.). Though bulls forfeited the gains they made last week, the overall outlook is still bullish. The bullish outlook would be rendered useless as soon as the support level at 0.9300 is breached to the downside, and the possibility of this happening is strong, especially if CHF maintains its current stamina.
GBPUSD
Dominant bias: Bearish
This is a weak market: price went downwards by 200 pips last week. It is currently illogical to seek long positions here until price actions justify that. It is possible that Cable will rally in the month of June, but until then, the current bias is bearish.
USDJPY
Dominant bias: Bullish
Since May 18, 2015, this currency trading instrument has moved upwards by 450 pips. This has caused a clean Bullish Confirmation Pattern in the market, and thus, further upwards movement is possible, largely as Yen continues to be weak. On Friday, May 29, 2015, price closed above the demand level at 124.00. The possible targets for this week are situated at the supply levels of 124.50 and 125.50.
EURJPY
Dominant bias: Bullish
This interesting cross has assumed a strong northwards push, moving north from around the demand zone at 133.00 and going near the supply zone at 136.50. More northwards movement is expected this week, which could cause bulls to gain another 200 pips. Generally, the outlook on JPY pairs is bullish for the month of June 2015, though there might be a few exceptions.
This forecast is concluded with the quote below:
“There are abundant opportunities to make a profit in the markets, but you need to work hard and diligently to find them. It can be done. There are many traders who make profits day after day. The decision you have to make, however, is whether you want to sit on the sidelines and say, “It couldn’t be done,” or jump in, resolute and confident, and work tirelessly until you achieve enduring financial success.” – Joe Ross
Source: Tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
