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Here’s the market outlook for the week:
EURUSD
Dominant bias: Neutral
Price went down on Monday and Tuesday, went up on Wednesday and Thursday, and came down again on Friday. This kind of erratic, zigzag behavior has resulted in a neutral bias on the market. This week, a rise in momentum is expected, for price could rise above the resistance line at 1.1900; or price could fall below the support line at 1.1700. As long as price stays within the two boundaries, the outlook on the market would remain neutral. A movement to the downside is, however, more likely this week, owing to a strong bearish outlook on EUR pairs.
USDCHF
Dominant bias: Bullish
This pair has gained roughly 110 pips this month – making further bullish effort last week. Price has tested the resistance level at 0.9850, and it would test it again, breach it to the upside and then target another resistance level at 0.9900. This expectation would be easily realized as EURUSD slides further southwards (a likelihood), and as USD gains stamina. The support level at 0.9800 could be tested briefly despite bullish effort is being made.
GBPUSD
Dominant bias: Bearish
The Cable dropped some 190 pips last week, testing the accumulation territory at 1.3100 before the shallow rally that was seen on October 20. The rally could turn out to be an opportunity to go short at a slightly higher price, for there is a Bearish Confirmation Pattern in the market. This week, the accumulation territories at 1.3150, 1.3100 and 1.3050 could be reached (especially as long as USD has some stamina in it).
USDJPY
Dominant bias: Bullish
Early last week, USDJPY began to make some attempt to go northward, and the attempt was successful, for its price went upwards by 170 pips last week, reaching the supply level at 113.50. Further northwards movement is possible this week (a strong US dollar versus a weak Yen), and thus, the targets for bulls are located at the supply levels of 114.00 and 114.50. A very strong northwards movement could also cause another supply level at 115.00 to be tested.
EURJPY
Dominant bias: Bullish.
This trading instrument consolidated in the first few days of last week, and then broke out northwards. The market went upwards by close to 200 pips, closing above the demand zone at 133.50 on Friday. This week, further upward movement is more likely than a downwards correct. A downward correction would be shallow and would get challenged by the demand zone at 133.00. Apart from this this, price is expected to reach the supply zones at 134.00, 134.50 and 135.00 before the end of the week.
GBPJPY
Dominant bias: Bullish
The biases on this volatile cross used to be neutral in the short-term and bullish in the long-term. Nonetheless, a bullish signal has been generated in the 4-hour chart, to corroborate the bullishness on higher time horizons. The outlook on the cross is bullish (as it is on certain other JPY pairs). The supply zones at 150.00, 150.50 and 151.00 could be reached this week. There are demand zones at 149.00 and 148.50: a formidable challenge to bears.
This forecast is concluded with the quote below:
“Following a detailed plan is important because it removes any underlying emotions from the decision-making process and thus enforces ongoing discipline in our trading activities. The less the trade becomes about us and the more it becomes about our rules and plan, the more we have steered ourselves towards achieving success in the markets on a consistent basis. The plan tells us what to do, as opposed to us looking at a chart and guessing what we should do.” – Sam Evans
Source: www.tallinex.com
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
