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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair has been able to maintain its bearish bias. In this kind of market, any rallies would proffer opportunities to sell short. Therefore, the current rally may be another short-selling opportunity, provided that it does not go above the resistance line at 1.3350. Any movement above that resistance line would mean the end of the bearish bias. Should the bearish journey continue, the price may reach the support line at 1.3200.
USDCHF
Dominant bias: Bullish
As it was expected – at least as a mandatory condition for the continuation of the extant bullish trend on the USD/CHF – the support level at 0.9100 has been breached successfully. After the breach to the upside, the price closed above that level, going further upwards. The price needs to break the resistance level at 0.9150 to the upside, or at least, test it, as the bullish journey continues. Now, the support level at 0.9100 has become a great barrier to any bearish pulls along the way.
GBPUSD
Dominant bias: Bearish
Since the middle of July 2014, the Cable has dropped by over 550 pips. It is clear that the trend-following sellers would have made huge gains while those who go against the trend would have suffered adverse consequences. There is still a Bearish Confirmation Pattern on the Cable, and so, long trades are not yet sensible. A trend is not over until it is actually over. It is possible that the price would reach the accumulation territories at 1.6650 and 1.6600 within the next several trading days. However, this would not happen without challenges from the bulls. The bullish challenges may be contained at the distribution territories at 1.6700 and 1.6750.
USDJPY
Dominant bias: Bullish
There is now an established northward outlook on this currency trading instrument. The price was able to break the demand level at 103.00 to the upside, going towards the supply level at 104.00. The supply level at 104.50 could be the target for the next week.
EURJPY
Dominant bias: Bullish
The Euro is a weak currency and the Yen is also a weak currency. But in this scenario, the Yen is weaker than the Euro; thus the current bullish breakout, which has now been sustained. In fact, all the JPY pairs are bullish and the EUR/JPY pair is no exception. After the supply zone at 138.00 is tested and broken to the upside, the price may target another supply zone at 139.00.
This forecast is concluded with the quote below:
“My good trades not only pay for my bad trades, but also put food on the table.” – Chris Ebert
Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
