Hot Features
Premium
Level up your trading with our powerful tools and real-time insights all in one place.
Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The EUR is now one of the weakest currencies among popular currencies, having dropped by roughly 900 pips since the beginning of this year. The support line at 1.1150 has already been tested and it would be tested again (it can even be breached to the downside), as it is supported by a vivid Bearish Confirmation Pattern in the market. The outlook for this week is bearish – continuous selling pressure is expected and there is a great possibility that EUR could reach parity with USD.
USDCHF
Dominant bias: Bearish
The bias on USDCHF remains unchanged. On Friday, January 23, 2015, price closed at 0.8784. As EURUSD is weak, USDCHF ought to be strong, and the strength would continue to come gradually in the context of a bearish outlook. Price should continue to move upwards this week, in a slow and steady manner.
GBPUSD
Dominant bias: Bearish
One nice thing about Cable is that it is now going in a clean positive correlation with EURUSD. The two pairs tend to go in positive correlation with each other – an established habit. Cable and EURUSD are both dropping, but the drop in the latter is more significant than the drop in the former. On Cable, further drop is expected this week, which may be more serious than the drop that was seen last week.
USDJPY
Dominant bias: Bearish
When compared to the EURJPY, this pair did not move so much recently. Upswings are alternated by downswings, though the bears are able to make their presence felt. Price may be able to reach the demand level at 116.50, but there is possibility that the bulls would end up dominating the market before the end of this week.
EURJPY
Dominant bias: Bearish
This currency trading instrument made some effort to rally last week. From the beginning of that week, price went upwards by 200 pips, reaching the supply zone at 137.50. However, further upwards movement was rejected at that supply zone, and price dived steeply, reaching the demand zone at 131.00. There is a negligible upward bounce in the market, which means almost nothing when compared to the overall bias. Generally, this instrument has dropped by over 1300 pips since the beginning of this year. Price may test the demand zones at 131.00 and 130.00, but it would go further below only in the face of continued weakness in the Euro, for there is a possibility that the yen would become weak before the end of this month.
This forecast is concluded with the quote below:
“In my opinion trading is the only way to protect and increase your capital in the long term. But I am not saying that you need to become a day trader. There are many and also long term ways to trade.” – Julian Komar
Source: Tallinex.com
Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
