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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
As it was prognosticated, EURUSD did not experience a significant movement last week, though price moved lower. The lower movement has resulted in a bearish signal, since there is now a Bearish Confirmation Pattern in the market. There are bearish targets at the support lines of 1.0750 and 1.0700, which would be reached as price continues meandering its way further south. EURUSD, and of course other EUR pairs, could become weaker. Generally, very strong movements should be seen on most (major) pairs and crosses this week and next week.
USDCHF
Dominant bias: Bullish
This currency trading instrument moved higher last week (by around 140 pips), resulting in a bullish outlook on it. The previously adamant resistance level at 1.0100, which is now a support level, was broken to the upside. Price is currently above the support level at 1.0150, threatening to go further north. The outlook on USD is now bullish, which should reflect on other USD pairs, save USDCAD. This is also true of CAD pairs, for other currencies are weak against CAD, which should continue for some time.
GBPUSD
Dominant bias: Bearish
Cable reached a low of 1.4078 and a high of 1.4362 last week, making a bullish effort in the context of a downtrend. The bias remains bearish, unless price goes above the distribution territory 1.4500, which is a daunting task for bulls because they would be faced with a strengthening USD. Therefore, Cable might experience some pullbacks this week.
USDJPY
Dominant bias: Bearish
This pair tested the demand level at 116.00 and bounced upwards by roughly 280 pips, closing at 118.77 on Friday. This rally was strong enough to become a threat to the recent bearish bias – which would be rendered useless once the supply level at 119.50 is overcome. The possibility of further rally is high, owing to the expected strength in USD. There would be strong volatility on JPY pair from this week till the end of the month.
EURJPY
Dominant bias: Bearish
EURJPY consolidated throughout last week. Even bearish breakouts were quickly countered by bullish corrections. Bulls and bears are presently engaged in a deadlock struggle that will come to an end soon, for this cross will start a directional movement this week, though a rally might be difficult as long as EUR is weak. High volatility would be witnessed.
This forecast is concluded with the quote below:
“Learning the business of trading is basically no different from learning any other business. Winning means learning major guidelines and concepts that you repeat so often in your own behavior that they become good habits. These good habits then become automatic behavior patterns…” – Andy Jordan
Source: www.tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
