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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The EUR is now one of the weakest currencies among the majors, while the USD is the strongest currency among the majors. Hence, the EURUSD dropped sharply again last week, dropping below the resistance line at 1.2550. Further downwards movement may cause the price to test the support lines at 1.2500 and 1.2450. However, it is very much likely that the EUR would begin to rally before the end of this week, which may eventually cause the aforementioned support lines to end up aiding the bulls.
USDCHF
Dominant bias: Bullish
The movement of this market is largely determined by what is happening to the USD and the EURUSD. A serious rally in the EURUSD may result in a sharp pullback on the USDCHF, which may make it to test the support level at 0.9550; whereas a continuation of the weakness in the EURUSD may cause the USDCHF to test the resistance level at 0.9750. But it should not be thought that the USD would reach parity with the CHF.
GBPUSD
Dominant bias: Bearish
The Cable dropped by over 270 pips last week, closing below the distribution territory at 1.6000. The price may reach the accumulation territory at 1.5900, which could be easily test this week – it could even get breached to the downside. On the other hand, the distribution territories at 1.6050 and 1.6100 may be targeted by the bulls.
USDJPY
Dominant bias: Bullish
This is a very strong currency trading instrument, forming a Bullish Confirmation Pattern in the market. There was a sharp pullback in the market last week, brought about by transitory stamina in the Yen. Eventually, the sharp pullback proffered an opportunity to go long when things went on sale in the context of a downtrend. The current rally in the market could lead the price towards the supply level at 110.50.
EURJPY
Dominant bias: Bearish
Since this market tested the supply zone at 141.00, it has come down by over about 400 pips. The demand zone at 137.00 has been tested, and the demand zone to watch this week is at 136.00. Should the EUR rally significantly enough, there may be a bullish run in this market, which could make become a threat to the current bearish outlook.
This forecast is concluded with the quote below:
“Information is power. Most big profits are gained through one person knowing something that most other people don’t.” – Skip Archimedes
Source: Tallinex.com
Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
