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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
Though EURUSD consolidated in the most part of last week, the bias on the market is bearish, for bullish pressure has seriously lost steam. The pair has consolidated to the downside and it might reach the support lines at 1.1100 and 1.1050. Nonetheless, bulls will make desperate effort to push the pair higher this week, and there is a high probability that their effort may yield some result. Any movement above the resistance line at 1.1350 would indicate that bulls have achieved their aim. Should EUR gain lots of stamina this week, the effect would be noticed on other EUR pairs.
USDCHF
Dominant bias: Bullish
USDCHF went up by 150 pips last week, running into a barrier at a resistance level of 0.9750. Bulls made several abortive attempts to break that barrier before the market closed on Friday. For the bullish bias to continue making sense, the barrier at 0.9750 must be overcome. That mean price would need to target the resistance levels at 0.9800 and 0.9850. On this pair, there could be two possible obstacles to bulls’ interests: (1) Any rally on EURUSD could send USDCHF south. (2) In case CHF gains enough strength (which is possible this month), USDCHF would experience some difficulties going forward.
GBPUSD
Dominant bias: Bearish
Since August 25, this market has dropped by 630 pips, following a test of the distribution territory at 1.5800. Price is now close to the accumulation territory at 1.5150; plus it could even reach other accumulation territories at 1.5100 and 1.5050. However, the market looks overbought, and while the aforementioned accumulation territories could be reached, a serious rally would not be a surprise (if it happens) this week. It should be noted that movements on GBPUSD (and other GBP pairs) would be significant this month, whether they go up or down.
USDJPY
Dominant bias: Bearish
USDJPY went down by over 230 pips last week, closing at 118.97 on Friday. There is a Bearish Confirmation Pattern in the market – the bearish trend ought to continue. This week, price could attain the demand levels at 118.50 and 118.00, providing that JPY is able to maintain its current strength versus USD; otherwise there could be a bullish breakout.
EURJPY
Dominant bias: Bearish
There was a strong bearish movement on this cross last week. From the supply zone at 136.00, price went down to reach the demand zone at 132.50. This is a movement of 350 pips. The bearish movement looks overextended, though there could be more bearish movement this week. On the other hand, there is also a possibility of a strong breakout to the upside before the end of the week.
This forecast is concluded with the quote below:
“When you make an unshakable commitment to a way of life, you put yourself way ahead of most others in the race for success. Why? Because most people have a natural tendency to overestimate what they can achieve in the short run and underestimate what they can accomplish over the long haul. They think they have made a commitment, but when they run into difficulty, they lose steam or quit. Most people get interested in trading but few make a real commitment. The difference between interest and commitment is the will not to give up. When you truly commit to something, you have no alternative but success. Getting interested will get you started, but commitment gets you to the finish line.” – Mark Minervini, a trading legend (Source: Tradersonline-mag.com)
Copyright: Tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
