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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
EURUSD consolidated from Monday to Friday, save a faint rally that was witnessed on Wednesday. The bearish bias on the pair still holds, though another week-long consolidation would lead it into a neutral zone. This week, attempts would be made to push price upwards, and that would be something that cannot override the current bearish bias unless price goes above the resistance line at 1.0800. Until that resistance line is broken to the upside, any rallies seen here should be taken as good “sell” signals.
USDCHF
Dominant bias: Bullish
Just like EURUSD, USDCHF consolidated last week, in a context of an uptrend (albeit some shallow bearish correction has been witnessed on smaller time horizons). Price has been able to stay above the support level of 1.0000; for a movement below that support level would result in a bearish bias. Price could reach the resistance levels at 1.0100 and 1.0150 within the next several trading days. This week, the movement on USDCHF is subject to whatever happens to EURUSD.
GBPUSD
Dominant bias: Bullish
Cable went up by 190 pips, testing the distribution territory at 1.2550, before a shallow correction that was witnessed at the end of last week. The outlook on Cable remains bullish (and some bullishness would be detected on GBP pairs as well). The distribution territory at 1.2550 would be tested again and most probably, breached to the upside, as price then goes on towards other distribution territories at 1.2600, 1.2650 and 1.2700.
USDJPY
Dominant bias: Bearish
As it was predicted, USDJPY went south by nearly 290 pips last week, thus ending the flat movement that happened in the market between April 3 and April 7. There is a clean Bearish Confirmation Pattern in the market and the outlook on it remains bearish for this week and this month (an outlook that is also true of other JPY pairs). This week, bears would make attempt to push price below the demand levels at 108.50, 108.00 and 107.50.
EURJPY
Dominant bias: Bearish
Our bearish targets for this market were exceeded last week, since price closed below the supply zone at 115.50., now aiming at the demand zone at 115.00. Price dropped 270 pips last week – having dropped roughly 730 pips since March 13, 2017. Further and further bearish movement is envisaged as price goes towards the demand zones at 115.00, 114.50 and 114.00. These are initial targets for the next several trading days, as they could be exceeded. Temporary bullish attempts could also be witnessed this week.
This forecast is concluded with the quote below:
“It feels good when I look at returns of big hedge funds, and see that I beat many of them almost every year.” – Roland Manuhutu
Source: www.tallinex.com
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
