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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
This pair trended downwards last week, testing the support line at 1.1750. The market went essentially sideways on Thursday and Friday, and may go below the support line at 1.1750, to target another support line at 1.1700. About 250 pips have been lost this month, and it just seems to be the beginning. The outlook on EUR pairs is bearish for this week (EUR would be seen going downwards versus major currencies).
USDCHF
Dominant bias: Bullish
This trading instrument is bullish in the long-term, but neutral in the short-term. Price has been consolidating in the past two weeks; whereas that is not strong enough to render the recent bullish bias useless. There is going to be a breakout at last, but the movement to the upside will no longer be a serious thing. While USDCHF is supposed to go upwards, there would be a challenge to the upwards move, because CHF is expected to gain serious stamina this week (major currencies will drop versus it). This means that the coming strength in CHF may hinder USDCHF from getting seriously pushed further northwards.
GBPUSD
Dominant bias: Bearish
The Cable is bearish in the long-term, but neutral in the short-term. The bearish movement that started last month, has continued this month (although price has been ranging in the short-term). There remains a valid Bearish Confirmation Pattern in the market, despite the fact that it has been ranging in the last two weeks. A breakout is imminent, which would most probably favor bears. The accumulation territories at 1.3450, 1.3400 and 1.3350 could be reached thus week.
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USDJPY
Dominant bias: Bullish
The bullish movement that was witnessed last week has saved the ongoing bullish bias in the market. The bullish movement started in March 2018 and it has held out till now. The supply level at 111.00 was tested before price closed below it on Friday. This week, there is a high probability that the market would continue going upwards, reaching the supply levels at 111.00, 111.50 and 112.00.
EURJPY
Dominant bias: Bearish
The bias on this cross is bearish, but it is a precarious bias. What the market did last week was a zigzag movement without a clear directional propensity. Price moved upwards, downwards, and upwards again, within the supply zone at 131.50 and the demand zone at 129.50. A 200 –pip movement to the upside or to the downside would easily change the bias to bullish or bearish, and that is exactly what is expected this week.
GBPJPY
Dominant bias: Bullish
The market is bullish, at least, in the very short-term. The current bullishness (which is not very strong), started on May 8, and it has been dragged on in spite of constant interferences from bears. Price succeeded in moving further northwards last week, almost reaching the supply zone at 150.00, before closing below it on May 18. This week, too much weakness in GBP could frustrate a clean bullish movement. Nevertheless, the supply zone at 150.00, might once again, be breached.
This forecast is concluded with the quote below:
“According to Kermit the Frog, it’s not easy being green. For skillful traders, it’s not hard to be green. May your trades be green.” – attributed
Source: www.tallinex.com
Trading realities: http://www.advfnbooks.com/books/unlockpotential/index.html
