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Here’s the market outlook for the week:
EURUSD
Dominant bias: Neutral
On September 18 and 19, this pair made a faint bullish attempt, only to come down on September 20 (and then went upwards on September 21 and 22). Since there is no conspicuous victory between bull and bear, the market remains in a neutral region. There is a need for price to go above the resistance line at 1.2050 (staying above it); or go below the support line at 1.1850 (staying below it). That is when there would be a directional bias.
USDCHF
Dominant bias: Bullish
This pair has generated a bullish signal, owing to a visible bullish effort that was made last week. Price first consolidated in the first few days of the week, and then rose upwards. Further rise is possible this week, as the resistance levels at 0.9700, 0.9750 and 0.9800 are targeted. A drop below the support level at 0.9650 would force the market back into a neutral territory, while a drop below the support level at 0.9500 would end in a strong bearish bias.
GBPUSD
Dominant bias: Bullish
GBPUSD consolidated throughout last week – albeit in the context of an uptrend. Price has gained roughly 700 pips this month, and there are chances to gain more. The distribution territory at 1.3650 (which was tested last week) would be breached to the upside, as price goes for other distribution territories for the rest of September. The outlook on GBP pairs remain bullish for this week.
USDJPY
Dominant bias: Bullish
This trading instrument went upwards by 150 pips last week, testing the supply level at 112.50 and then getting corrected a bit lower. There is a clean Bullish Confirmation Pattern in the market, which signals further bullish movement this week. The supply levels at 112.50, 113.00 and 113.50 might be reached before the end of the month. The demand levels at 111.50 and 111.00 would impede bearish attacks along the way.
EURJPY
Dominant bias: Bullish
This cross has become bullish in the long-term and in the short-term. Last week price went upwards by 190 pips, and then followed a shallow correction on Friday. Following the shallow correction would be a rise towards the north, as price slashes the supply zones at 134.00, 134.50 and 135.00 to the upside (possibly exceeding them). The outlook on JPY pairs are strongly bullish for this week.
GBPJPY
Dominant bias: Bullish
The market gained about 1,100 pips this month, before the bearish correction that was witnessed on Friday. Further bearish correction could take place, but it should not be significant enough to result in a bearish bias (JPY pairs are mostly expected to go upwards this week). The bearish correction would end up giving opportunities to join the existing bullish trend, at better prices. A gain of 200 – 300 pips is anticipated before the end of September.
This forecast is concluded with the quote below:
“Trading goes best when it is yoked to rewards… that are independent of the most recent trading results.” – Brett Steenbarger, Ph.D.
Source: www.tallinex.com
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
