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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bearish
The market is bearish in the short-term, for price went southwards throughout last week, moving briefly below the support line at 1.1750 and then closing above that support line on Friday. Other support lines at 1.1700 and 1.1650 could be tested this week, provided there is a serious selling pressure in the market. There are resistance lines at 1.1850, 1.1900 and 1.1950, which should impede serious rallies.
USDCHF
Dominant bias: Bullish
This pair is bullish in the short-term, as it went northwards throughout last week, moving briefly above the resistance level at 0.9950 and then closing below that resistance level on Friday. Other resistance levels at 1.0000 and 1.0050 could be tested this week, provided there is a serious buying pressure in the market. There is also a strong possibility that the pair would plummet seriously before the end of this week, owing to a possible display of stamina in CHF. Most major currencies would drop against CHF this week (and USD possibly included).
GBPUSD
Dominant bias: Bullish
The bias on the Cable is bullish, but the bias is very weak, owing to some bearish attempt to pull down the price last week. A movement below the accumulation territory at 1.3250 would result in a bearish signal being generated, while a movement above the distribution territory at 1.3550 would result in putting more emphasis on the recent bullish signal. One of these scenarios would materialize this week.
USDJPY
Dominant bias: Bullish
From Monday to Wednesday, USDJPY went downwards; but it started moving upwards on that very Wednesday, to gain 150 pips, and to test the supply level at 113.50 by Friday (closing around that supply level). This has resulted in a Bullish Confirmation Pattern in the market, which means price would break the supply level at 113.50 to the upside, as it targets other supply levels at 114.00 and 114.50.
EURJPY
Dominant bias: Neutral
This trading instrument is quite choppy and completely neutral. There are wild upswings and downswings in the market as it is completely directionless. The current market condition would continue for some more days until price is able to stay above the supply zone at 134.50, or below the demand zone at 131.50. This is a condition that requires a high volatility and a perpetual movement in one direction. The condition would be met before the end of this month.
GBPJPY
Dominant bias: Bullish
The outlook on this cross is bullish. From November 4 to 6, the cross went downwards, and then rallied. The rally has saved the ongoing bullish outlook on the market, despite the bearish correction that took place on November 8 (which might turn out to be an opportunity to buy long at a better price). This week, price would go upwards again, reaching the supply zones at 152.00, 152.50 and 153.00.
This forecast is concluded with the quote below:
“Sometimes I wonder what would have happened if I hadn’t learned how to trade. What future would have been blocked off?” – Louise Bedford
Source: www.tallinex.com
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
