Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

Current events in the Eurozone will continue to shape the movement of EURUSD and other EUR pairs this week.  Last week, price opened with a gap-down of about 200 pips before an upward bounce of over 300 pips occurred on Monday. On Tuesday, price began to go south and tested the support line at 1.1050 on Wednesday.   After that, price consolidated till the end of the week. This week, EURUSD and other EUR pairs could open with gaps, and of course, the gaps would be followed by strong movements in case they occur. The outlook on EURUS D is bearish: unless the resistance line at 1.1250 is overcome, further southward movement is expected.

USDCHF

Dominant bias: Bullish   

This currency trading instrument traded downwards on Monday, reaching the support level at 0.9250. Form that level, price went north by 250 pips, testing the resistance level at 0.9500. Once the resistance level was tested, a bearish correction took price lower by another 100 pips. Last week, price closed around the support level a 0.9400, but it is likely that price would rally again. The bias is bullish as long as the support level at 0.9250 is not breached to the downside.

GBPUSD

Dominant bias: Bearish

Following the recent sideways movement, Cable broke out to the downside, going below the distribution territory at 1.5600.  The accumulation territory at 1.5500 is an easy target for bears, for there is a clean Bearish Confirmation Pattern in the market right now. Should price go further southward, another accumulation territory at 1.5400 would be attained. However, this does not rule out the possibility of rally attempts.

USDJPY

Dominant bias: Neutral   

There is not yet any significant movement on USDJPY, as price only oscillates between the supply level at 124.00 and the demand level at 122.00. The present market condition is thus great for scalpers and intraday traders, but not for swing and position traders. Eventually price would either break out above the supply level at 124.00 or below the demand level at 122.00, after which there would be a significant movement. It should be noted that the most probable direction for July 2015 is bearish. This is also true of most other JPY pairs.

EURJPY

Dominant bias: Bearish

At the open of the market last week, this cross experienced a gap-down of about 400 pips as it slammed into the demand level at 134.00. Immediately after this, price rose sharply by over 400 pips, testing the supply zone at 138.00. Price then got caught in an equilibrium phase for the rest of the week. This week, the conditions of the Eurozone will also determine what happens on this cross, because whatever happens to EUR/USD will cause almost identical movement on this cross. A southward movement is most likely.   

This forecast is concluded with the quote below:

“Give the market time to develop once you have defined your stops and profit targets. You cannot control the market anyway. It is certainly no coincidence that we have had reports from many traders telling us that they have not only achieved better results with simple no-frills trading, but have also felt better.”– Marko Graenitz

Source: www.tallinex.com