Here’s the market outlook for the week:

EURUSD

Dominant bias: Neutral

This pair experienced a great deal of volatility last week. Price went up on Monday, and then dropped seriously from Tuesday to Thursday. On Friday, price spiked upwards and immediately following that, got corrected to the downside. The high volatility and short-term swings in the market have cancelled any directional bias on the market, not because of any equilibrium conditions, but because neither bulls nor bears are able to dominate protractedly in spite of the fact that momentum is currently high. This pair would be characterized by high momentum this month, and it would be difficult for it to rally protractedly as long as USD is strong.  

USDCHF

Dominant bias: Bullish   

Despite the fact that bearish attempts caused the support levels at 0.9550 to be tested a few times last week, USDCHF was able to maintain its bullishness. Since the support level at 0.9550 has become a strong barrier to bearish effort, it would be safe to assume that the bullish outlook on the pair will remain valid as long as price is able to stay above that support level. The resistance level at 0.9700 is also a big challenge to bulls, for price could not break above it last week in spite of sincere effort by the bulls. A break above that resistance level would thus result in a smooth continuation of the extant bullish trend. The outlook would go bearish as soon as the support level at 0.9550 is breached to the downside.

GBPUSD

Dominant bias: Neutral   

Cable has not been able to go below the accumulation territory at 1.5450 or go above the distribution territory at 1.5650 for weeks; therefore, the accumulation territory at 1.5450 and the distribution territory at 1.5650 could serve as boundaries for short-term swing trades. In this week or next, price could move out of these boundaries, thereby giving way to a serious directional movement. In this month, GBP (and other GBP pairs) would most probably be weak in most cases, though there could be occasional bullish attempts on the way. 

USDJPY

Dominant bias: Neutral    

This currency trading instrument has been moving sideways since the middle of July 2015.  A break above the supply level at 124.50 could result in a Bullish Confirmation Pattern in the market, and a break below the demand level 123.00 could also result in a Bearish Confirmation Pattern in the market. This month, it is highly possible that Yen would gain lots of strength, thus causing JPY pairs to tumble. The strength in the Yen may start before the end of this week, and therefore, it is possible that USDJPY will go below the supply levels at 123.00 and 122.00 this week or next week.

EURJPY

Dominant bias: Bullish  

Although there is a measure of strength in the EURJPY cross, the situation looks delicate.  The supply zone at 137.50 could challenge further rally in the market, and the possibility of a bearish movement starting anytime is high because the outlook on JPY pairs for this month of August is bearish. 

This forecast is concluded with the quote below:

“Now I embrace the uncertainty and design my processes so as to have the potential to thrive in the uncertainty. I want to accept winners and cut losses short in an uncertain world, and I want to do it repeatedly without desire to know the future.”– Markham Gross

Source: www.tallinex.com