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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This is a bear market, which continued its bearish trend last week. The bearish trend is expected to continue this week as well, although the possibilities of transitory rallies cannot be ruled out. The support line at 1.2500 has been tested and it would be tested again as the bears make more effort to push the price to the downside. Should they succeed in doing so, the next target in the market would be the support lines at 1.2450 and 1.2400.
USDCHF
Dominant bias: Bullish
This is a bull market, which moved further north last week. This northward movement is supposed to continue this week, in spite of occasional corrections in the market. The resistance level at 0.9650 was tested last week, and with further northward journey, it would be tested again and breached to the upside as the price targets another support level at 0.9750. The occasional correction would also be challenged at the support levels of 0.9550 and 0.9500.
GBPUSD
Dominant bias: Bearish
The GBP, which is currently strong versus some other currencies, is weak when compared to the USD. This is because the USD is now one of the strongest currencies among the majors. Besides, the GBPUSD is normally correlated with the EURUSD in a positive fashion and therefore, the former would go downwards when the latter goes downwards (except in rare cases). From the distribution territory at 1.6150, the price dived towards the accumulation territory at 1.5950, testing it a few times. With more strength in the USD, the accumulation territory would be breached to the downside as the price targets another accumulation territory at 1.5850.
USDJPY
Dominant bias: Bullish
Since the USD is very strong and the JPY is very weak, it is no wonder that this pair moved upwards by more than 450 pips last week. The trend is supposed to continue as long as the USD is strong versus the JPY, allowing the bulls to target the supply level at 113.50. The demand levels at 111.50 and 111.00 should act as challenges to southwards corrections along the way.
EURJPY
Dominant bias: Bullish
The Euro is not strong as such – only that the Yen is weak enough to allow this cross to rise upwards. The rise has been significant enough to generate a very formidable Bullish Confirmation Pattern in the market. On Friday, October 31, 2014, the price closed above the demand zone at 140.50. With additional weakness in the Yen and the further exertion of buying pressure, the market could reach the supply zone at 141.50 this week.
This forecast is concluded with the quote below:
“A trader is one who actively speculates on the market movement, drawing upon research and/or discretionary judgment to anticipate changes in prices.” – Dr. Brett N. Steenbarger
Source: Tallinex.com
Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
