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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
Last week, this pair opened with a massive gap-up, which also happened on other EUR pairs. Price managed to reach the resistance line at 1.0950, and then consolidated till the end of the week. The gap-up has forced a bullish bias to appear, but this may not last long because EURUSD are expected to become weak this week. While there are resistance lines at 1.1000 and 1.1050, the support lines at 1.0900, 1.0850 and 1.0800 could be tested this week.
USDCHF
Dominant bias: Bearish
USDCHF is in a short-term bearish mode, and price consolidated last week in the context of that short-term bearish mode. Within the last several days, price has not been able to move above the resistance level at 1.0000 or below the support level at 0.9900. A movement above the resistance levels at 1.0000 and 1.0100 would result in a Bullish Confirmation Pattern, while a movement below the support levels at 0.9900 and 0.9800 would reinforce the existing bearishness in the market.
GBPUSD
Dominant bias: Bullish
Last week, price consolidated from April 24 to 26 and then resumed its upwards journey, which was started on April 10 (although the most significant bullish movement occurred on April 18). The distribution territory at 1.2950 was tested on Friday before the market closed. Since April 10, price has gone upwards by 570 pips, and this is just the beginning, because there is a strong Bullish Confirmation Pattern in the market, and because the outlook on GBP pairs is also bullish for May. There may be some bearish attempts, but the bullish bias might survive till the end of May.
USDJPY
Dominant bias: Bullish
USDJPY also opened with gap-ups at the beginning of last week, just as other JPY pairs did. The gap-up forced a bullish signal to form as price went further upwards, testing the supply level at 111.50. The bullish bias might hold for a few more days, (reaching the supply levels at 112.00, 112.50 and 113.00 at most), but the outlook on USDJPY is bearish for this week and this month. A major pullback would eventually happen.
EURJPY
Dominant bias: Bullish
Last week, the market opened with an upward gaps, which was not filled because price even went further upwards on Tuesday, almost testing the supply zone at 122.00 and consolidating till the end of the week. This cross might go upward a bit further; though there is a high probability of strong selling pressures occurring this week and this month, which would override the current bullish signal. The outlook on JPY pairs is seriously bearish for May.
This forecast is concluded with the quote below:
“Today, I am a full-time active private trader and I am thankful that trading has eliminated the need for me to re-enter the corporate world. I’m also a full-time Mum to two fabulous kids who are benefiting from the time I’m now able to spend with them every single day… Really, this is a profession you can enter regardless of your educational background.” – Louise Bedford
Source: www.tallinex.com
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
