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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
EURUSD went bearish last week, closing at 1.1152 on Friday. Bulls made serious effort to push price upwards on Thursday and Friday, but bears came with stronger hands to effect a movement to the downside. There are support lines at 1.1100 and 1.1050, which may be tested this week. On the other hand, the resistance lines at 1.1300 and 1.1350 would oppose any meaningful rallies in the market. This bearish bias cannot be overridden until price goes above the resistance line at 1.1350.
USDCHF
Dominant bias: Bullish
USDCHF went bullish last week, closing slightly above the support level at 0.9800 (on September 2). Bears made serious effort to push price downwards on Thursday and Friday, but bulls came in to put a check on this, thereby preventing a serious decline. There are resistance levels at 0.9850 and 0.9900, which may be tested this week. Additionally, support levels at 0.9750 and 0.9700 would check any pullbacks that may occur in the week. This bullish outlook would remain valid as long as price does not go below the support level at 0.9700.
GBPUSD
Dominant bias: Bullish
Cable consolidated in the first few days of the week, and then began moving upwards on September 1. The upwards movement was significant enough to result in a Bullish Confirmation Pattern in the 4-hour chart. Further upwards movement is possible, which might enable price to reach the distribution territories at 1.3400 and 1.3450 this week. We would continue to witness high volatility on Cable and other GBP pairs this week and this month.
USDJPY
Dominant bias: Bullish
USDJPY has been able to sustain the bullish movement it started on August 26, 2016. Since then, price has gone up 400 pips, assayed to stay above the supply level at 104.00, but closing below it on Friday. The outlook on the market, as well as other JPY pairs, has become strongly bullish, and that is the reality right now. This means that USDJPY is expected to continue going north until there is a significant change in the market situation.
EURJPY
Dominant bias: Bullish
As it was expected, the protracted equilibrium phase that occurred on this cross from August 8 to 26, 2016 has ended. Price has rallied by approximately 290 pips since then, currently making effort to settle above the supply zone at 116.00, which is trying to aid bears in their current losing battle. Bulls have to overcome that supply zone in order to effect further rally, which is anticipated for this week. Since JPY is now weak, any currencies (like GBP) which become strong would enjoy massive gains versus the Yen.
This forecast is concluded with the quote below:
“The world’s most successful traders believe in themselves and their ability to win. In fact, many of them feel that they “own” the market. They are not necessarily being arrogant, but they are sure of themselves and that they are able to take profits out of the market.” – Andy Jordan
Source: www.tallinex.com
Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html
