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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair is still in a bullish mode in spite of the effort of bears to pull price down. There are support lines at 1.1100 and 1.1050 and a downside breach of the support lines would result in a new bearish outlook. There are also resistance lines at 1.1400 and 1.1450: an upside breach of those resistance lines would result in further confirmation of the existing bullish mode. However, even if the market moves further upwards, it is more likely that it would become weak by the end of this week or before the end of this month.
USDCHF
Dominant bias: Bearish
On USDCHF, last week was characterized by desperate struggles between the bull and the bear. The bear is still strong enough to check the bull from realizing his objectives and as such, the bias on the market remains bearish. A movement below the support level at 0.9250 would result in a stronger bearish propensity, especially when price closes below the support level and moves further south towards another support level at 0.9200. This is because price could not close below the support level at 0.9250 last week, and a movement below it would mean that the bear is stronger. However, any significant weakness in EURUSD, which may happen before the end of this month, would cause USDCHF to rally seriously.
GBPUSD
Dominant bias: Bullish
Cable rallied by 300 pips last week, rising from the accumulation territory at 1.5250 and closing above the accumulation territory at 1.5550. Further upward movement is possible, enabling price to reach the distribution territory at 1.5700. However, a strong bearish trend is anticipated on Cable (and other GBP pairs) before the end this week or this month. This bearish trend might also be in force in most of July 2015.
USDJPY
Dominant bias: Bearish
This currency trading instrument has already gone bearish – though the bulls are fighting a losing battle to reverse the trend. Price tested the demand level at 122.50, and then bounced upwards. Though a movement above the supply level at 125.00 could challenge that new bearish signal, the upward bounce could also bring an opportunity to sell short at a better price. In case of further southward movement, price could breach the demand levels at 122.50 and 121.50 to the downside.
EURJPY
Dominant bias: Bullish
On Friday, June 12, 2015, this cross closed at 139.00. The outlook on the market is currently bullish, though threatened. Price needs to move upwards in order to save the bullish outlook. A breach of the demand zone at 138.00 could result in a Bearish Confirmation Pattern, and as such, price should not go below that demand zone; otherwise the recent bullish outlook would be rendered invalid. This cross, plus other JPY pairs, has a high probability of becoming weak by the end of this month and in most of July 2015.
This forecast is concluded with the quote below:
“…The only truth is the chart. Don’t ever listen to the news without looking hard and long at the chart. The chart is the truth. Nothing else is the truth.” – Scott Brown
Source: Tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
