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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
Although the EUR/USD remains a weak pair, the direction on it has not been significantly bearish (neither has the price been able to go upwards significantly). However, this kind if market is great for scalpers and intraday traders, but not for swing and position traders. Before the bias can be termed as bullish, the price would need to break the resistance line at 1.3650 to the upside – therefore rendering the bearish bias invalid – or the price may break the support line at 1.3600, therefore adding to the bearish strength. Until then, swing traders may stay aside.
USDCHF
Dominant bias: Bullish
The condition affecting this pair is similar to that of the EUR/USD. The bias is bullish but it is very weak. In fact, a movement below the support level at 0.8900 would render the bullish bias invalid, and therefore, for the bias to continue to make sense, the price needs to break the resistance level at 0.8950 to the upside. It should, however, be noted that the price would find it very difficult to breach the great resistance level at 0.9000 to the upside.
GBPUSD
Dominant bias: Bullish
The Bullish Confirmation Pattern on the Cable remains logical. The pause in the upward journey has resulted in a clean sideways movement, after which the upward bias could continue. The bulls have so far refused to allow the price to be pushed seriously. When the bullish momentum returns to the market, the distribution territory at 1.7150 would be breached to the upside, but it is important that the price is able to remain above that territory. Should the price breach the accumulation territories at 1.7100 and 1.7050 to the downside respectively, then the bullish outlook would become illogical.
USDJPY
Dominant bias: Bearish
This is a bear market, and the USD/JPY is supposed to continue going further downwards. This would not be without challenges, since the bulls also would be making effort to push the price upwards. The demand level at 101.00 could be tested; and it would require more bearish effort to violate the demand level, closing below it.
EURJPY
Dominant bias: Bearish
This cross is weak: a result of the weakness in the EUR and the strength in the JPY. The downward movement could continue, making the price to reach the demand zone at 137.00. Meanwhile, the supply level at 138.50 ought to be an impediment to possible rallies along the way.
This forecast is concluded with the quote below:
“I am absolutely satisfied with the markets being my line of work, because it is always interesting and there are constantly new challenging scenarios that need to be analyzed.” – Martin Pring
Source: Tallinex.com
Learn from the Generals of the Markets: Market Generals
