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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
EURUSD first consolidated last week; then it broke upwards, closing above the support line at 1.1300. The bias is still bullish and price could test the resistance lines at 1.1450 and 1.1500. Failure to do this could lead to a drop in the price, and therefore, the condition of USD would be the greatest determinant of the movement of EURUSD for the rest of this month. Only a significant weakness in USD may help EURUSD maintain its current bullish bias.
USDCHF
Dominant bias: Bearish
This pair was able to break below the resistance level at 0.9250 (which bears could not breach in the first two weeks of June 2015). Since then, price has moved below another resistance level at 0.9200. The support level at 0.9150 was tested last week and it could be tested again, especially with more selling pressure in the market. That support level could even be breached to the downside.
GBPUSD
Dominant bias: Bullish
GBP is really strong, and the evidence can be seen on most GBP pairs. Cable moved upwards by 350 pips last week, and it has moved upwards by 650 pips this month. The distribution territory at 1.5900 is currently being besieged and it might end up being slashed by bulls. Another possible target is the distribution territory at 1.5950. However, Cable must now be approached with caution because it is possible that the pair would become weak before the end of this week or this month.
USDJPY
Dominant bias: Bearish
This market first moved sideways last week. On June 17, there was a false bullish breakout, which made the market go upwards by 100 pips before bears came in to force it lower. The market is now close to the demand level at 122.50, which may be breached to the downside anytime. It should be borne in mind that this market is expected to trend lower and lower in the month of July 2015: hence any rallies in the short-term could well bring short-selling opportunities.
EURJPY
Dominant bias: Bullish
This cross did not make any large movement last week, though the outlook remains bullish. The bullish outlook itself is not very strong. So, any movement below the demand zone at 138.00 would mean the end of the bullish outlook, leading to a Bearish Confirmation Pattern in the market. This is a condition that would signify the bearish power on the cross.
This forecast is concluded with the quote below:
“My opinion is that traders who have long been around and keep learning, will establish themselves automatically.” – Dr. Brett N. Steenbarger
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
