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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
Within the last few weeks, the EUR/USD broke below the support line at 1.3550, but it was unable to stay below it. Eventually, the price rose seriously, closing above the support line at 1.3600. This price action has resulted in a Bullish Confirmation Pattern, and the price is expected to go more northward. The aforementioned support line would serve as a challenge to any possible bearish plunge along the way.
USDCHF
Dominant bias: Bearish
After a long desperate siege at the resistance level of 0.9000 (which is a great psychological level) and desperate battle between the bulls and the bears, the bulls gave way and the price plunged smoothly. The plunge has resulted in a Bearish Confirmation Pattern in the market. This means that it is no longer logical to place long trades in this market. It is possible that the price would continue to go southward, eventually reaching the support level at 0.8850. One important thing must be noted: the possibility of the price going further southward is stronger than the possibility of the price going northwards. Therefore, any rallies – no matter how strong – would meet a recalcitrant challenge at the resistance level of 0.9000. At that level, the bullish soldiers fought cut-throat battle but suffered heavy losses, so it would continue to act as an impediment to the bulls’ wish.
GBPUSD
Dominant bias: Bullish
Unlike the USD/CHF which failed to break the resistance level at 0.9000 to the upside after a long siege, the Cable was successful in breaking the accumulation territory at 1.7000 to the upside. It closed above that territory and moved further upwards, testing the distribution territory at 1.7050. The distribution territory is an easy target that would be breached to the upside, paving way for more northward movement.
USDJPY
Dominant bias: Bullish
This market is bullish, but the bulls’ strength is constantly challenged. In fact, the market needs to stay above the demand level at 101.50 for the bullish bias to continue to be valid. Otherwise, the already weak bullish bias would be rendered totally invalid. In order for the bias to be relevant, the market needs to go further upwards, breaking the supply level at 102.50 to the upside, and closing above it.
EURJPY
Dominant bias: Bullish
Since last Monday, this cross has been rejecting bearish pulls on it. The successful rejection has resulted in a bullish signal in the market. As long as the price stays above the demand zone at 138.50, the bullish signal would make sense.
This forecast is concluded with the quote below:
“Performance is more about me than my system.” – Adam Jowett
Source: Tallinex.com
Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
