Here’s the market outlook for the week:

EURUSD

Dominant bias: Bullish

Last week, this pair moved north by over 420 pips. Price moved above resistance lines at 1.1250 and later fell below it, closing just below the resistance line at 1.12000. While it is not impossible for EURUSD to reach the resistance lines at 1.1300 and 1.1350, the outlook for this week (and this month) is bearish. This means that EURUSD might go further higher, but the risk of the beginning of a downward trend is very high this week.   

USDCHF

Dominant bias: Bearish

This currency trading instrument has been under bearish pressure as a result of the strong bullish trend on EURUSD. Price broke through the resistance levels at 0.9400 and 0.9350 last week, testing the support level at 0.9300. This instrument will remain under bearish pressure as long as EURUSD is strong. However, any significant weakness in EURUSD will cause USDCHF to jump seriously upwards, enabling price to go upwards by at least, 200 pips this week.   

GBPUSD

Dominant bias: Bullish

GBPUSD moved upwards by 300 pips last week, and later fell by 300 pips. This means that the gains made by the bulls have been forfeited to the bears. Although the extant bias is still bullish, any movement below the accumulation territories at 1.5050 and 1.4950 will result in a clean bearish signal in the market. This week – and this month – the outlook on GBPUSD, including some GBP pairs, is bearish. This is also true of most popular pairs and crosses; save anti-cyclical currencies like USD and JPY.

USDJPY

Dominant bias: Bullish     

There is now a bullish signal in this market. The bullish signal started on April 30, 2015, and the price has now crossed above the demand level at 120.00. The supply levels at 120.50 and 130.00 can also be tested, but one thing must be borne in mind; the market might tumble if Yen becomes strong. This is because the outlook on JPY pairs for this week, including this month, is bearish. Welcome to the month of the bears!

EURJPY

Dominant bias: Bullish

This cross moved upwards by over 580 pips last week, due to the strength in Euro. EURJPY is known as one of the fastest moving among popular JPY pairs, hence the strong northward speed. Since the stamina in Euro can be depleted this week or next, EURJPY can begin a smooth journey to the south. Bulls, please take care.

This forecast is concluded with the quote below:

“I go with the flow of markets and manage risk along the way. Markets are like flowing water. It is better to use the flowing power in your favor than it is to work against it.”– Markham Gross