Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

EURUSD is now a volatile pair, characterized by serious struggles between bear and bull in the context of a downtrend. The support line at 1.0850 was tested last week, but price could not break it to the downside. For the downtrend trend to continue this week, that support line should the broken to the downside as price targets another support lines at 1.0800 and 1.0750. This bearish outlook would make sense as long as the resistance line at 1.1050 is not broken to the upside.  

USDCHF

Dominant bias: Bullish   

This is one of the few currency pairs among the majors which traded in one direction throughout last week. From the support level at 0.9650, price moved upwards by 200 pips, closing around the resistance level at 0.9850. The bias is bullish: the resistance levels at 0.9900 and 0.9950 could be tried this week. Therefore, it is expected that this currency pair would be edging it way upwards as long as USD does not experience any significant weakness.  

GBPUSD

Dominant bias: Bearish   

On GBPUSD, there was a southward breakout (out of the volatile equilibrium phase that was seen last week). Within the last two trading days of the last week, the southwards breakout made the price to test the accumulation territory at 1.5450. The price even went briefly below that accumulation territory before bouncing upwards. This week, further southward attempts may be witnessed because the outlook for GBP (and other GBP pairs) is bearish. And this is true of this month.   

USDJPY

Dominant bias: Bullish    

This currency trading instrument traded upwards last week, reaching the supply level at 125.00. Nevertheless, further upwards movement was rejected at that level, making price to get corrected to the downside. It should be noted that, prior to the current price action, USDJPY moved sideways for a few weeks, and when there was a breakout to the upside, it was only a movement of 100 pips. The bearish correction that happened on Friday has made the prior bullish breakout look like a false one. This means that, while further bullish attempts are not impossible, the most probable direction for the market this week is southward.   

EURJPY

Dominant bias: Neutral  

On EURJPY cross there was no clear victory between bulls and bears, Last week, desperate bullish effort was being frustrated at the supply zone at 136.50. This shows that bears are fighting hard to check bulls’ ambitions. A test of the demand zone at 135.00 would thus result in a Bearish Confirmation Pattern, thereby enabling more bearish journey. It is expected that Yen would be strong this week or this month, which should cause most JPY pairs, including EURJPY to become strongly bearish.  

This forecast is concluded with the quote below:

“Real professional traders have a competitive drive and appreciate the intellectual challenge that the markets pose to them again and again.”– Dr. Brett N. Steenbarger

Source: www.tallinex.com