Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish  

EURUSD did not move upwards or downwards significantly last week, though the outlook remains bearish. Last week was the week in which the FX markets consolidated the most this year, with certain pairs and crosses not going up or down by 50 pips throughout the week. EURUSD simply vacillated between the support line at 1.0700 and the resistance line at 1.0800, but there might be a breakout this week, which would favor the current bearish outlook (although the consolidation could continue for some time).       

USDCHF

Dominant bias: Bullish

Just like EURUSD, USDCHF moved in a tight range last week. Price moved between the great psychology level at 1.0000 and the resistance level at 1.0100. The ranging movement could keep on happening for some time, but a breakout would eventually happen, which would probably favor bulls, as price goes further upwards, targeting the resistance level at 1.0200. It would require a serious bearish force for price to breach the great psychological level at 1.0000 to the downside.        

GBPUSD

Dominant bias: Bearish   

In the context of a downtrend, Cable made a determined bullish correctional movement throughout last week.  The market rose from the accumulation territory at 1.5050, topping at the distribution territory at 1.5250. This is a bullish movement of 200 pips, but it cannot render the downtrend invalid unless the distribution territory at 1.5350 is broken to the upside. Until that happens, long trades might be opened with caution.     

USDJPY

Dominant bias: Bullish    

After reaching the supply level at 123.50, this currency trading instrument got corrected downwards a little, reaching the demand level at 122.50. Apart from this, there was nothing significant last week, as it is true of other pairs and crosses. Even most fundamental figures that were supposed to impact major pairs were shrugged off last week, save the Australian employment figures, which impacted AUD pairs. USDJPY might also continue moving sideways, but a breakout is in the offing.   

EURJPY

Dominant bias: Bearish

The EURJPY cross was simply choppy; and that might continue this week. The cross would find it difficult to trend seriously upwards as long as the Euro is weak, and so, the movement in the context of a downtrend could continue. Nonetheless, there is still a possibility that most JPY pairs could assume a measure of bullish effort this month; and that could be when EURJPY would trend upwards.  

This forecast is concluded with the quote below:

“One of the most common misconceptions is that a retail trader cannot successfully and profitably day trade – I can tell you now that’s a load of tosh and don’t believe those naysayers… This belief normally comes from people who have royally failed and so try and take others down with them.” – Chronictrader (Trade2win)  

Source: www.tallinex.com