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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair dropped 300 pips last week, testing the support line at 1.0700. The largest southwards movement last week occurred on Friday – a result of positive fundamental figures coming out of the US. The outlook on the pair remains bearish, which would be valid as long as USD is strong. The Euro could rally against certain other currencies this month, but it is not likely that it would rally seriously against the US dollar.
USDCHF
Dominant bias: Bullish
The movement on this intriguing pair has been nicely predictable. Price moved further north by 200 pips as the US dollar reached parity with the Swiss Franc (as it was forecasted last week). There is a clean Bullish Confirmation Pattern in the market, owing to the stamina in USD. As price has closed above the great psychological support level at 1.0000, it would no longer be easy for bears to breach the level again. In fact, further upward journey is expected from here.
GBPUSD
Dominant bias: Bearish
Last week, Cable was the strongest moving pair among the majors. It fell by roughly 400 pips, testing the accumulation territory at 1.5050. The selling pressure in the market is quite strong and this might continue further this week. Any upwards bounces that are seen here should be taken as opportunities to sell short, because price could go further south by at least, 200 pips this week.
USDJPY
Dominant bias: Bullish
This currency trading instrument moved smoothly upwards last week. The movement was especially serious on Friday, November 6, 2015. Price is now staying above the demand level at 123.00, targeting the supply levels at 124.00 and 125.00. Since the outlook on most JPY pairs is bullish for the month of November, it is logical to conclude that this currency trading instrument would continue its uptrend. There are other demand levels at 122.00 and 121.50, which are supposed to check any large pullbacks along the way.
EURJPY
Dominant bias: Bearish
Although this cross did not move seriously last week, it remains in a bearish mode. Price tested the demand zone at 131.50, but it could not breach it to the downside. The cross would be weak as long as the Euro is weak. Nonetheless, it could only be pushed up by a surprise weakness in the Yen, which might eventually happen this week or next week, since it is expected that most JPY pairs would be bullish this month. On the EURJPY cross, predictable directional movements would be witnessed from now till the end of the year 2015.
This forecast is concluded with the quote below:
“I notice that today there are much larger movements occurring much more quickly than in the past. That’s a good thing for us traders since the large [movements] will also result in good opportunities for making a profit.” – Oliver Klemm
Source: www.tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
