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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
EURUSD is bullish in the short-term, but neutral in the long-term. Against the volatility contraction in the higher time-frames, bulls managed to push price above the support line 1.1200. The next targets are around the resistance lines at 1.1250 and 1.1300, which would require strong buying pressure to be breached to the upside. The support lines at 1.1150 and 1.1100 would act as barriers to bearish attempts along the way.
USDCHF
Dominant bias: Bearish
This market is bearish in the short-term, but neutral in the long-term. Despite low volatility in the higher time-horizons, bears managed to push price below the resistance level at 0.9750, now close to the support level at 0.9700. The targets for this week are around the support levels at 0.9650 and 0.9600, which would require strong selling pressure to be breached to the downside. The resistance levels at 0.9750 and 0.9700 would act as barriers to bullish attempts along the way.
GBPUSD
Dominant bias: Bearish
The dominant bias on GBPUSD is bearish. As it was mentioned in the last weekly forecast, price went down last week in spite of desperate opposition from bulls, who left their traces in the market. Short trades are not logical in this market because of the current price action, and because the outlook on GBP pairs remains bearish for this week. Thus, the accumulation territories at 0.2900, 0.2850 and 0.2800 could be tested before or by Friday.
USDJPY
Dominant bias: Bearish
This instrument consolidated in the first few days of last week, dropped in the middle of the week and experienced a slight upwards correction around the end of the week. There is a Bearish Confirmation Pattern in 4-hour and daily charts, which signal further bearish movement. The demand levels at 100.50 and 100.00 could be tried this week. The bearish bias would hold out until the supply level at 104.00 is overcome – something that may not happen soon.
EURJPY
Dominant bias: Bearish
This cross pair dropped significantly last week, moving briefly below the demand zone at 112.50 before the recent bullish effort in the context of a downtrend. The bullish effort could be seen as another opportunity to sell short at slightly higher prices (since the outlook on the cross pair is bearish). The demand zones at 113.00, 112.50 and 112.00 could be tried this week or next. The only thing that can overturn the current bearish outlook is a 300-pip movement to the upside.
This forecast is concluded with the quote below:
“I read charts like some people read the newspaper. My world revolves quite a bit around what I see on the charts.” – Joe Ross
Source: www.tallinex.com
Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html
