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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair is bearish in the long-term, and bullish in a very short-term. Since May 30, price has been making a measure of bullish attempt (save the correction that was witnessed on Friday). A movement above the resistance lines at 1.1850, 1.1900 and 1.1950 will bring about a long-term bullish outlook on the market. On the other hand, a movement below the support lines at 1.1650, 1.1600 and 1.1550, will cancel the short-term bullishness in the market, while strengthening the major bearish outlook.
USDCHF
Dominant bias: Bearish
The market has been caught in a slow and gradual bearish movement since May 10 (over 230 pips). It is possible that the market would continue going further downwards (albeit slowly), especially when EURUSD gains a lot of stamina. The support levels at 0.9800 (which has previously been tested), 0.9750 and 0.9700, would be reached soon, and that might bring about a strong Bearish Confirmation Pattern in the market.
GBPUSD
Dominant bias: Bearish
Although there is currently a bearish trend in the market, price made faint effort to go upwards last week. It is much more likely that the faint bullish effort will eventually translate into a significant rally this week, because the outlook on GBP pairs is bullish. The distribution territories at 1.3450, 1.3500 and 1.3550 would be reached. This will eventually invalidate the bearish bias on the market, as everything turns bullish.
USDJPY
Dominant bias: Bullish
This trading instrument is bullish in the long-term, but neutral in the short-term. In the last two weeks, price has generally oscillated between the demand level at 108.50 and the supply level at 110.50. As long as price continues to oscillate between those demand and supply levels, the short-term bias would be neutral. A break above the supply level at 110.50 will result in confirmation of the existing long-term bullish outlook while a break below the demand level at 108.50 will result in a clean bearish outlook.
EURJPY
Dominant bias: Bullish
The bias on the EURJPY has just turned bullish. Since May 30, price has rallied by 500 pips, reaching the supply zone at 130.00, before the current bearish correction (which happened on June 8). A test of the demand zone at 127.50 will threaten the new bullish bias on the market; while a movement towards the supply zones at 129.50, 130.00 and 130.50 will strengthen it. There will be a measure of volatility in the market this week.
GBPJPY
Dominant bias: Bullish
Although a bearish correction was experienced on Thursday and Friday, the bias on the market remains bullish. A sideways movement throughout this week will bring about a neutral bias on the market. A drop of 150 – 200 pips will result in a bearish signal, while a movement towards the supply zones at 147.50, 148.00 and 148.50, will save the ongoing bullish outlook on the market. It is much more likely that bulls would be able to hold out this week.
This forecast is concluded with the quote below:
“Once you know how to trade, no-one and nothing can sweep aside your skill. It’s something you can do no matter how old you are. As long as you have a dream in your heart that you yearn for, the sun never has to set on your identity as a ‘trader’.” – Louise Bedford
Source: www.tallinex.com
Trading realities: http://www.advfnbooks.com/books/unlockpotential/index.html
