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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
EURUSD moved upwards by 250 pips last week, testing the resistance line at 1.1400. That resistance line has proven to be an obstacle to bulls because price was unable to close above it last week (in spite of forays into it). Price might be able to go above the resistance line eventually, but it might not be able to go far north. There is a possibility that this pair would experience a large pullback this week, which might enable it to reach the support lines at 1.1300 and 1.1250.
USDCHF
Dominant bias: Bearish
This currency trading instrument went down 200 pips last week, closing below the resistance level at 0.9600. The support levels at 0.9550 and 0.9500 could be breached this week. However, there might be a rally – which would be significant enough to threaten the current bearish bias. In case price moves above the resistance level at 0.9850, it would result in a clean Bullish Confirmation Pattern.
GBPUSD
Dominant bias: Bearish
From Monday to Wednesday, Cable went upwards by 330 pips, reaching the distribution territory at 1.4450. Bears effected further movement at that territory, causing the market to experience a bearish correction of 250 pips. The ongoing bearish correction might make price further downwards by 100 – 200 pips, but there would soon be an exponential rally in the market, which would eventually render the current bearish outlook invalid. The outlook on GBP is bright for the month of April, and as a result of this, we would see GBP gaining strength versus other major currencies. Wild fluctuations with other major currencies like AUD and NZD would be witnessed.
USDJPY
Dominant bias: Bearish
There is a currently a “sell” signal in this market, owing to a Bearish Confirmation Pattern in it. Price closed below the supply level at 112.00, going towards the demand levels at 111.50 and 111.00. Long trades do not make sense in this market, until there is a clean indication of bulls’ hegemony, which would only be brought about by serious weakness in Yen. The movement for this month would mostly be bearish.
EURJPY
Dominant bias: Bullish
Bulls were able to push this popular cross to the upside until it reached the supply zone at 128.00. There has been a shallow pullback around that zone, causing the cross to close at 127.24 on April 1, 2016. Further bullish movement is possible this week, though there could be another bearish run before the end of the month. JPY pairs are expected to continue moving upwards this week (and perhaps, next week), but they would begin to go south before the end of the month.
This forecast is concluded with the quote below:
“Most traders… will tell you their success came from finding the approach that best suits them and pushing through it to get better and better.” – Elitetrader
Source: www.tallinex.com
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html
