Here’s the market outlook for the week:

EURUSD

Dominant bias: Bullish

This pair first traded downwards last week, reaching the support line at 1.0750. Around that support line, further bearish movement was rejected and price rose by 250 pips. There is now a clean Bullish Confirmation Pattern in the chart: there is a possibility that the resistance lines at 1.1050 and 1.1100 could be challenged this week. The support lines at 1.0950 and 1.0800 should try to resist possible bearish plunges along the way.

USDCHF

Dominant bias: Bearish   

Greenback is weak and Swissie is strong – hence the current bearish outlook on USD/CHF market. Price tried to rally last week, reaching the resistance level at 0.9750, but further rally was rejected there and price nosedived. The bears are now testing the support level at 0.9500; they might push the price towards the support levels at 0.9450 and 0.9400. With more intense bearish pressure, the price might even go beyond those support levels.

GBPUSD

Dominant bias: Neutral

Last week, price on GBPUSD moved between distribution territory at 1.4850 and the accumulation territory at 1.4750, before a breakout to the upside occurred.  In spite of the bullish breakout, which happened on April 3, 2015, the market is generally trendless. The market is now above the accumulation territory at 1.4900, and things would turn bullish as soon as the distribution territory at 1.5000 is overcome. Any movement below the accumulation territories at 1.4850 and 1.4800 will simply reinforce the existing neutral bias.

USDJPY

Dominant bias: Bearish    

All bullish effort on this currency trading instrument has been rendered useless. In fact, long trades are no longer sensible here, for the trend has turned bearish. Generally, the outlook on JPY pairs for the month of April is bearish and the weakness may start before the end of this week or next week. The next barrier the bears will have to overcome is the demand level at 118.50, which is currently an obstacle to the bearish outlook.  

EURJPY

Dominant bias: Bullish

One of the factors that account for the strength in this market is the fact that EUR is strong. It is probable that the strength will continue, which may make the market go further upwards. Therefore, the supply zones at 131.50 and 132.00 could be attained. One thing should be noted: the outlook on JPY pairs for this month is bearish and this cross would go up only as long as EUR is stronger than Yen. Whenever Yen becomes stronger than EUR, the cross would plummet.    

This forecast is concluded with the quote below:

“…Look at what the market is doing right now. When it’s going up, then buy. When it stops going up, then sell. And when it’s going down, go short or stay out. It’s that simple.”– Dr. Van K. Tharp