Here’s the market outlook for the week:

EURUSD

Dominant bias: Bullish

This pair moved upwards by over 260 pips last week. The bullish journey began at the support line of 1.0550, and price is now above the support line at 1.0800. The next targets for the bulls are located at the resistance lines of 1.0900 and 1.1000, but there must be an ongoing buying pressure for these targets to be reached. The current bullish outlook is delicate, because any weakness in the Euro could send the market tumbling, reaching the support lines at 1.0700 and 1.0600.  

USDCHF

Dominant bias: Bearish

USD/CHF nosedived by 300 pips last week. Price reached a high of 0.9862 and a low of 0.9494. The support level at 0.9500 has already been tested and it could be tested again (even breached to the downside). Ultimately, the support levels at 0.9400 and 0.9350 can also be tested. On the upside, there are resistance levels at 0.9650 and 0.9750.  

GBPUSD

Dominant bias: Bullish

Cable is now strong – the bullish effort that started recently having paid off. There is now a strong Bullish Confirmation Pattern in the market. Price moved upwards by over 400 pips, rising from the accumulation territory at 1.4600 and testing the distribution territory at 1.5050. In spite of the current shallow bearish retracement, Cable is normally expected to uphold its strength, attaining the distribution territories at 1.6000 and 1.0650.

USDJPY

Dominant bias: Bearish    

USDJPY has gone bearish, being able to go below the supply level at 119.00. Price has to maintain its position below that supply level for the bearish outlook to continue to make sense, for any movement above that supply level could put the bears in a defensive position. Should the market continue its weakness this week, the demand levels at 118.50 and 118.00 would be battered.  

EURJPY

Dominant bias: Bearish

Although this currency trading instrument rose by 200 pips last week (from the demand zone at 126.50 to the supply zone at 128.50), the bearish bias is still in place. Only a movement above the supply zone at 129.50 would render the current bearish bias invalid. Any journey below the current demand levels (127.50 and 127.00) would simply enforce the presence of the current bearish bias.  

This forecast is concluded with the quote below:

“KISS”, keep it simple, means you start learning what really works for you, what is “true” for you and then translate that information onto the charts.”- Mercedes Oestermann van Essen