Here’s the market outlook for the week:

EURUSD

Dominant bias: Neutral   

EURUSD traded lower last week, testing the support line at 1.1250, to close at 1.1282 on Friday. The movement of the price has essentially been sideways since the beginning of April and there is no significant directional journey till now. However, there is a possibility that bulls would effect a rally this week, which might enable price to reach the resistance lines at 1.1350, 1.1400 and 1.1450. In addition, EUR pairs could be seen strengthening against other majors.

USDCHF

Dominant bias: Bearish

This pair moved upwards last week, in the context of a downtrend. Price tested the support level at 0.9500 and later rose above the support level 0.9650, which means the downtrend is currently being threatened. A movement above the resistance level at 0.9750 would mean the end of the downtrend, but that would probably not happen. The outlook on USD for this week is bearish, and as such, further southward movement could be witnessed before the end of the week, which could cause price to reach the support levels at 0.9600, 0.9550 and 0.9500. This could cause the existing downtrend to be strengthened eventually.    

GBPUSD

Dominant bias: Neutral

The GBPUSD was volatile throughout last week, with neither bulls nor bears having upper hands. There should be a directional movement this week, which would most probably be in favor of bulls. This means the market could rally this week, reaching the distribution territories at 1.4300, 1.4350 and 1.4400. The accumulation territories at 1.4100 and 1.4050 may do a good job in thwarting bearish attempts this week. Some GBP pairs might also rally, like GBPCAD.   

USDJPY

Dominant bias: Bearish

From April 11 to 14, this currency trading instrument trended upwards by 190 pips. On April 15, price got corrected lower, in conjunction with the existing bearish bias. This means the rally that was seen between April 11 and 14 was a mere short-term rally in the context of a downtrend. Further bearish movement is expected this week, which might make price go down by at least 150 pips. Any rallies seen this week should be taken as short-selling opportunities.       

EURJPY

Dominant bias: Bearish

This cross, which dropped steeply in the first week of this month, was caught in an equilibrium phase last week. Price would go out of the equilibrium phase this week, and most likely go further southward, owing to the Bearish Confirmation Pattern in the market. Price closed below the supply zone at 123.00 on Friday. In case price breaks out to the south, the demand zones at 122.00 and 121.50 might be tested. There cannot be a threat to the current Bearish Confirmation Pattern unless the supply zone at 126.00 is overcome.      

This forecast is concluded with the quote below:

“Support and resistance levels are generally more porous in volatile markets. Common sense suggests that, in these conditions, you should give the trade more room.”- Lee Bohl

Source: www.tallinex.com