Here’s the market outlook for this week:
EURUSD
Dominant bias: Bullish
This pair is now in an uptrend, though the movement is tardy and shaky. Price has been very volatile as the bulls and bears fight for control. As a result of the Bullish Confirmation Pattern in the market, it is more likely that this pair will go further upwards. The resistance line at 1.3650 was tested and could be tested again, suggesting a breach to the upside.
USDCHF
Dominant bias: Bearish
USD/CHF has also been slow and tardy, but bearish in outlook. So far, the market has been able to maintain its bearish bias, going lower in a slow and steady manner. This downward move is also riddled with high volatility. Since sellers have supremacy here, there is a possibility that price may reach the support level at 0.8900.
GBPUSD
Dominant bias: Bullish
Here, the barrier to further northward movement remains the distribution territory at 1.7050, which was vigorously tested last week. It was tested this week as well but price is yet to close above it. After suffering a transient setback, price is now trying to go upwards to challenge the distribution territory again. This must be broken for the bullish outlook to maintain its validity.
USDJPY
Dominant bias: Bearish
Short-term orders appear more logical than long-term ones at the moment, because the recent signals have been short-lived. Right now, there is a bearish indication in the market, so it makes sense to seek short trades.
EURJPY
Dominant bias: Bearish
The recent ‘buy’ signal on this cross was weak and unsustainable. The bias has turned bearish because of perceived strength in the Yen. The EUR position is too delicate, and this is reflected in its weakness against the Yen. Price tested the demand zone at 138.00; and with renewed bearish effort, it could go lower to test the demand zone at 137.00.
I’d like to conclude this forecast with the following quote:
“It is the sum of all trades that is relevant for the trading result, not the single trade.” – Jens Klatt
