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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The pair has remained bearish recently, going downwards slowly and steadily. There is a Bearish Confirmation Pattern in the chart, and with the continuation of the selling pressure, the price would easily test the support line at 1.3650. Should that support line be breached to the downside, the next target would be the support line at 1.3600. The resistance lines at 1.3750 and 1.3800 should act as good barriers to any possible rallies.
USDCHF
Dominant bias: Bullish
Since March 20, 2014, there has been a bullish signal on this currency trading instrument, plus the price has moved upwards by over 150 pips. The confirmed bullish bias is expected to continue, especially with an increase in the stamina in the USD. The market may reach the resistance level at 0.8950. It should be noted that the resistance level has already been tested: the market would test it again and possibly breach it to the upside.
GBPUSD
Dominant bias: Bearish
It has been noted that the GBP has been weak against some major currencies, so it is not a surprise that it has assumed a bearish outlook against the USD. The previous flat movement in the price has resulted in a bearish run. The market is now trading below the distribution territory at 1.6600, which means that the price could go towards the accumulation territory at 1.6500. This is our target for the week.
USDJPY
Dominant bias: Bullish
Since March 21, a bullish run has been expected in the market. This market really went up and tested the supply level at 104.00 rigorously, but it failed to slash it to the upside and close above it. Historically, the bullish signal could go on till the April 10, 2014. Right now, there is a bearish correction in the chart. The correction would be seen as a good chance to buy long, provided it does not push the price below the demand level at 103.00.
EURJPY
Dominant bias: Bullish
Just as the USDJPY and other JPY pairs are doing, this cross has generally been bullish. The possibility of corrections cannot be ruled out; for prices do not move in straight lines. However, the current southward correction in the market is strong enough to threaten the established bullish bias. The bullish bias is deemed to be valid as long as the price is able to stay above the demand zone at 141.00.
This forecast is concluded with the quote below:
“Have you noticed that the hardest trades to take emotionally often turn out to be the best trades?” – Sam Seiden
Source: Tallinex.com
Eye-opening trading lessons: http://www.harriman-house.com/experttraders
