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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This market has been moving sideways for days without going in a directional move. However, the bullish bias is still valid because the price has been able to stay above the strong support line at 1.3800. Any movement below that support line could mean the end of the bullish bias. Really, the odds of the price moving upwards are very high when momentum returns to the market. For the bulls, there are targets at the resistance line of 1.3900 and 1.3950.
USDCHF
Dominant bias: Bearish
Although the current situation on this pair can still be termed as being bearish, the situation is highly precarious. The bearish outlook is under a serious threat because the pair has been moving slowly, but steadily upwards recently. The slow and steady upward move could render the bearish outlook totally useless, especially when the price breaks the resistance level at 0.8850 to the upside and closes above it. When the price stays below the resistance level at 0.8850, the bearish outlook is valid, but when it moves above it, the bearish outlook becomes useless.
GBPUSD
Dominant bias: Bullish
The Cable is strong indeed! With the Bullish Confirmation Pattern in the chart, it is more likely that the price would continue going further upwards in spite of the bearish retracement that is taking place on in. The retracement is shallow, and it is not expected to go below the accumulation territory at 1.6750. For the northward trend to continue making sense, the Cable needs to go above 1.6800 again and trade further upwards. Any test of the accumulation territory at 1.6700 (though not anticipated) can mean a danger to the bulls.
USDJPY
Dominant bias: Bullish
It is no longer valid to call this currency trading instrument a bear market, for there is a new ‘buy’ signal on it. It cannot be mentioned for sure whether the signal would be sustained or not, but one thing is true: a short trade does not make sense here at the present. For the past several days, the price has been making attempts to trade upwards (the bears could be slice up!); and this action is what has resulted in a bullish indication. Thus, the price could go on to test the supply levels at 103.00 and 103.50 within the next several days.
EURJPY
Dominant bias: Bullish
Needless to say, this cross has gone bullish and long trades ought to be sought now. The price action has formed a Bullish Confirmation Pattern in the chart and the price looks determined to challenge the supply zone at 142.00, plus another supply zone at 142.50 (providing that the buying pressure is intense enough).
This forecast is concluded with the quote below:
“When I started in the 70’s you could make money with a 10-day moving average. Over the years the noise has increased and you need to trade slower and slower trends.” – Perry Kaufman
Source: Tallinex.com
Eye-opening trading lessons: http://www.harriman-house.com/experttraders
