Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

This pair dropped by 430 pips last week, leading to a Bearish Confirmation Pattern in the chart.

The price has already tested the support line at 1.1000, and it could test it once again, possibly breaking it to the downside. The support lines at 1.0900 and 1.0850 are the probable targets for this week, especially with the continuation of the current bearish bias.     

USDCHF

Dominant bias: Bullish  

The strength in the USD has enabled this pair to go upwards from the support level at 0.9150, reaching the resistance level at 0.9450. This is a movement of about 300 pips and there is a possibility that price would continue its upwards journey, on the condition that CHF does not become strong enough to make this difficult. Strength in CHF has been expected since last week, and it is something that could happen this week, affecting other CHF pairs as well.    

GBPUSD

Dominant bias: Bullish

The current price action on Cable is a threat to the recent bullish trend. In fact, as soon as the accumulation territory at 1.5400 is breached to the downside, the recent bullish trend would be render completely useless. Further weakness may cause price to test the accumulation territories at 1.5350 and 1.5300. However, this does that mean that bulls would not make attempts to push price towards the distribution territories at 1.5600 and 1.5650.

USDJPY

Dominant bias: Bullish    

USDJPY broke upwards significantly – an event that was long anticipated during the recent protracted consolidation phase in the market. A break above the demand level at 120.50 shows that the consolidation phase is over, and from there, price moved further north, testing the supply level at 121.50 (even breaching it to the upside). More bullish movement is probable this week, and the bullish bias would be valid as long as the demand level at 120.50 is not broken to the downside.

EURJPY

Dominant bias: Bearish

The movement of this cross is now largely determined by whatever happens to Euro; hence the present weakness of the cross. Price dropped by over 250 pips last week, in spite of some sideways movement along the way. The cross has closed below the supply zone at 134.00, and the next target could be the demand zone at 133.00.   

This forecast is concluded with the quote below:

“Michael [Marcus] taught me one thing that was incredibly important... He taught me that you could make a million dollars. He showed me that if you applied yourself, great things could happen. It is very easy to miss the point that you really can do it.”- Bruce Kovner (a billionaire trading veteran)