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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
EURUSD managed to hold out its bullishness last week, in spite of the current short-tern consolidation in the market. Price reached the resistance line at 1.0800 and moved sideways till Friday. Many unsuccessful attempts were made to overcome the resistance line at 1.0800, but price could not stay above it. This week, that resistance line could possibly be overcome as another resistance line at 1.0800 is possibly targeted. However, there is also a strong possibility of weakness in the market; unless USD continues to be weak versus EUR.
USDCHF
Dominant bias: Bearish
Price dropped 70 pips last week, testing the support level at 0.9900. Attempts to breach that support level have not been successful, but that could happen this week, as selling pressure continues in the market. Since price has already gone below the psychological level at 1.0000, it would not be easy for it to go above that level again. There are potential targets at the support levels of 0.9850 and 0.9800 this week, which could be reached as long as USDCHF continues its weakness.
GBPUSD
Dominant bias: Bullish
GBPUSD went upwards last week, reaching the distribution territory at 1.2500; and then consolidating till the end of the week. There is a strong Bullish Confirmation Pattern in the market, and the outlook on GBP pairs continues to be bullish, and further bullish movement is expected on GBPUSD this week. The pair would go upwards by a minimum of 150 pips, testing the distribution territories at 1.2550, 1.2600 and 1.2650.
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USDJPY
Dominant bias: Bearish
This pair dropped 160 pips last week. Since March 10, price has dropped 430 pips, leading to a strong bearish bias on the market, which would continue as long as USDJPY is weak. The demand level at 111.00 was tested several times last week, but price managed to close above it. This week, further southwards movement would happen, once the demand level at 111.00 is breached to the downside. However, there is an indication of probable rallies on JPY pairs before the end of the month, which would also affect USDJPY.
EURJPY
Dominant bias: Bearish
Last week, there was some downwards movement on this cross, which dropped 180 pips to test the demand zone at 119.50. Since March 13, price has dropped 310 pips. There is currently a “sell” signal in the market, which may enable the demand zones at 119.00 and 118.50 to be reached. On the other hand, there could be a rally in the market before the end of the month. This is also expected on other JPY pairs.
This forecast is concluded with the quote below:
“It is critical to develop a well thought out and organized trading plan. It is then important to have the discipline needed to follow it… Trading should bring fulfillment of your business and personal goals.” – Andy Jordan
Source: www.tallinex.com
Traders’ Mindset: Super Strategies
