Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.comEURUSD
Dominant bias: Bullish
Last week saw the resistance line at 1.1300 tested, followed by a correction. The bullish bias remains valid, and the Euro is gaining strength while the Dollar weakens, so breaching the resistance line at 1.1300 and targeting the resistance line at 1.1350 is expected as the recent strengthening of the Euro has already caused some EUR pairs to start moving up.
Dominant bias: Neutral
There is currently no clear outlook, but there is going to be a directional movement this week - most probably downwards. EURUSD is likely to trend upwards (based on expected strength in the Euro), which should cause USDCHF to decline. Other contributing factors are impending weakness in USD, and a possible strengthening of CHF, so monitor CHF pairs for signs. The likely targets for this week are therefore the support levels at 0.9700, 0.9650 and 0.9600.
Dominant bias: Bearish
GBPUSD is bearish in the long-term, though there is presently a fight against all odds to effect a meaningful rally. Price moved upwards 140 pips in the first two days of last week before starting a decline from Wednesday, and movement below the accumulation territory at 1.3100 will create a very strong Bearish Confirmation Pattern. However, movement above the distribution territory at 1.3450 will result in a near-term bullish outlook.
Dominant bias: Bearish
Last week saw a slide of 260 pips and a brief visit below the demand level at 101.50 before a 170-pip rally. The supply level at 103.00 was tested during the rally and further upside is possible this week - potentially ending the current bearish outlook. If that happens, the supply levels at 103.50 and 104.00 might be reached.
Dominant bias: Bullish
This pair is bullish in the short term and bearish in the long term. Efforts to move south were stalled last week as price was pushed from the demand zone at 114.00 towards the supply zone at 115.50 - cancelling the 200-pip pullback from Monday to Wednesday. Price should continue to push upwards due to expected weakness in the Yen so the outlook is bullish for JPY pairs this week.
I’d like to conclude this forecast with the following quote:
“Success in the long run for me is defined as consistently positive returns with a consistency for never losing too much money when things go wrong. For those starting out I think it is very important to develop a trading strategy that will stand a very good chance in working through all business cycles. The world looks very different now to what it looked like in 2006, 1999, 1991, 1982 and is forever changing. Trading strategies that depend on a certain market environment will always get found out when the market environment changes. As a trader you want to be trading from now till the day you drop dead.” - Anton Kreil (Source: Traders-mag.com)
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