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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
From the weekly low of 1.0935, this pair went upwards by over 200 pips, to close above the support line at 1.1100 on Friday. Price is now close to the resistance line at 1.1150, and a breach of that resistance line would enable price to go towards another resistance lines at 1.1200 and 1.1250. As long as the support line at 1.1000 is not broken to the downside, the bullish signal, which has formed in this market, would remain valid.
USDCHF
Dominant bias: Bearish
USD/CHF was unable to go above the psychological level at 1.0000. An attempt to do that on October 25 was quickly forestalled – even before that psychological level was even tested. It has been mentioned that failure to breach the level might result in a serious pullback, and that was exactly what happened. Price pulled back significantly last week, to close below the resistance level at 0.9700 on Friday. This 210-pip bearish movement has resulted in a Bearish Confirmation Pattern in the market and further price decline is a possibility this week (unless USD gathers some stamina).
GBPUSD
Dominant bias: Bullish
Following a few weeks of consolidation, GBPUSD rallied massively last week. Price went upwards 370 pips, to test the distribution territory at 1.2550. The bias has already turned bullish in the short term (though it would take another 1000-pip movement to the upside, before the bias on the daily chart can turn bullish). Right now, there is a strong buying pressure in the market and this should continue this week. Unless USD gathers lots of stamina, bulls would be able to reach the distribution territories at 1.2650, 1.2700 and 1.2750.
USDJPY
Dominant bias: Bearish
USDJPY consolidated on Monday and then plummeted on Tuesday. While going south, the demand level at 102.50 was almost tested, and this has brought an end the recent bullish bias. The demand level at 102.50 would eventually be tested, and probably breached to the downside. However, there is also a possibility that JPY pairs would make some bullish attempts this week, which could also be reflected on USDJPY.
EURJPY
Dominant bias: Bullish
This trading instrument did not move very much last week. Unlike USDJPY, it was engaged in a slight bearish correction in the middle of last week; and the corrective actiion was ended on Friday as the market closed on a bullish note. This week, whatever happens to EUR would have some impact on the market. Before the end of the week, price would have gone either above the supply zone at 115.50 or below the demand zone at 113.50.
This forecast is concluded with the quote below:
“I’m a full time trader. Nothing else…For all of you guys that think trading full time isn’t possible, well I’m here to tell you it is. I actually met another full time trader the other day at the basketball court (trading for 20 years) and he trades millions of dollars. So I don’t understand why people think that trading full time a myth…” – MarketAddict (Source: Elitetrader.com)
Source: www.tallinex.com
Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html
