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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market consolidated from Monday to Wednesday and then dropped sharply on Thursday and Friday. There is a Bearish Confirmation Pattern in the market, which makes further drop a possibility. Since the outlook on EUR pairs remains bearish for this week (just as it was bearish for last week), the support lines at 1.1550, 1.1500 and 1.1450 are the next targets. However, the market would start rallying sometime in November, for the outlook on EUR pairs is bullish for November (especially starting from next week).
USDCHF
Dominant bias: Bullish
USD/CHF gained 200 pips last week, moving briefly above the strong resistance level at 1.0000, but closed below it on October 27. The parity that was briefly achieved by USD and CHF would be achieved again this week, because the outlook on the pair is bullish for this week. USD is supposed to remain fairly strong, and thus, price would reach the resistance levels at 1.0000, 1.0050 and 1.0100 this week. But the bullish domination would not hold out very long in November, because it is expected that EURUSD would rally in that month, and this would cause a selling pressure on USDCHF.
GBPUSD
Dominant bias: Bearish
This trading instrument is slightly bearish. It has been engaged in short-term upswings and downswings for about two weeks – a condition that is expected to continue until a strong volatility arises in the market. The volatility would propel price above the distribution territory at 1.3300 or below the accumulation territory at 1.3000. In November, there would be strong movements on GBP pairs, which would be bullish in most cases.
USDJPY
Dominant bias: Bullish
Although there was no strong northwards movement last week, this pair is bullish. Effort to stay above the supply level at 114.00 has been thwarted, but a lot of activity remains around that supply level. A closer look at the market reveals that bulls are still strongly determined to push the pair upwards, and that is what they will likely achieve this week, for the outlook on certain JPY pairs is bullish for this week.
EURJPY
Dominant bias: Bearish
EUR pairs became mostly bearish in the last few days of last week, and EURJPY was not spared either. The market initially made some bullish effort, but further bullish movement was rejected at the supply zone of 134.50 (which was tested several times, without being breached). From that supply zone, price plummeted below the supply zone at 132.00 (about 260 pips). The demand zones at 131.50 and 131.00 could be tested before price begins to rally this week. The rally would continue until a fresh opposition is met at the supply zone of 134.50.
GBPJPY
Dominant bias: Bullish
This cross is bearish in the short-term, and bullish in the long-term. From October 23 to 25, some bullish attempt was made, but price came down in October 26 and 27. The outlook on the market is bullish for this week and for most of the month of November. Therefore, price would eventually rally, gaining at least 400 pips in November. There are demand zones at 148.50, and 148.00, which could be tried before price rallies eventually.
This forecast is concluded with the quote below:
“One thing is true in trading: when things are going so well that it is hard to believe what is happening, don’t change the disciplines and behavior that are working for you!” – Andy Jordan
Source: www.tallinex.com
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
