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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
The dominant bullish bias still exists in this market, but it is seriously under threat.
The price attempt to reach the resistance line at 1.4000 failed, and the price got corrected significantly. Should price test the support line at 1.3800 or cross it to the downside, then the bullish bias would be rendered completely useless. Until that happens, it might be assumed that the price could rally i.e. if it could maintain its presence above the support level at 1.3800.
USDCHF
Dominant bias: Bearish
The outlook here is bearish, though the situation looks very precarious. The bulls have been very active recently: the bears have been subjugated and they need to prevent the price from remaining above the resistance level at 0.8800. The inability of the price to fall back below the aforementioned resistance level would result in the bearish outlook being rendered invalid. The invalidation would be especially strong when the price succeeds in challenging the resistance level at 0.8850.
GBPUSD
Dominant bias: Bullish
The bullish bias is still in place, but the price has been unable to cross the distribution territory at 1.7000 to the upside. In fact, the price has been consolidating to the downside for the past few days. The accumulation territories 1.6900 and 1.6850 have a job to do – they have to prevent the price from slashing though them and closing below them successively. This is the only thing that can keep the dominant bias intact. As long as the price is unable to breach those accumulation territories to the downside, it could be expected that price would rally from this point.
USDJPY
Dominant bias: Bearish
The recent equilibrium phase on this currency trading instrument has resulted in a slow southward propensity. However, the pair has met a great challenge at the demand level of 101.
50. The demand level has been tested several times, but there is a need for the price to breach it to the downside so that the southward move could continue.
EURJPY
Dominant bias: Bearish
The sudden weakness in the Euro has resulted in a Bearish Confirmation Pattern in the chart. Short trades are currently recommended. The cross should be trading below the price zone at 140.50, as it goes towards the price zone at 140.00. On the other hand, there might be some short-term rally from the aforementioned demand level.
This forecast is concluded with the quote below:
“People ask me when I’m going to retire, well… I actually have retired. This [trading] is the most under-worked and overpaid occupation in the world.”– Chris Tate
Source: Tallinex.com
Eye-opening trading lessons: http://www.harriman-house.com/experttraders
