Here’s the market outlook for this week: EURUSD Dominant bias: Bearish This pair recently made a commendable effort to rally, but the Greenback is still very determined to continue showcasing its strength. The attempted rally almost invalidated the bearish outlook before the bears succeeded in pushing price back down quite significantly. Price is now below the resistance line at 1.2650 and, should the bears hold out long enough, could test the support line at 1.2500 again. USDCHF Dominant bias: Bullish The weakness of EURUSD has had an opposing effect on USDCHF. There was a pullback that almost resulted in a Bearish Confirmation Pattern, but the bulls were again able to push price upwards - above the support level at 0.9550. With further bullish determination, price may end up reaching the resistance level at 0.9701 - a level that has long been targeted by bulls. GBPUSD Dominant bias: Bearish Since Cable is positively correlated with EURUSD, it is no surprise that it has mirrored EURUSD. There was a noticeable attempt to push price upwards, but the bears won out and succeeded in pushing price lower; allowing a Bearish Confirmation Pattern to form. Further weakness may allow the accumulation territory at 1.5950 to be reached again. USDJPY Dominant bias: Bearish The Yen is strong and even the mighty US Dollar knows it. This pair has been going downwards recently, making it illogical to go long. However, the demand levels at 107.50 and 107.00 may succeed in halting the bearish movement so, while price may test the aforementioned demand levels, the possibility of a rally exists for next week and that may bring price up towards the supply levels at 109.00 and 109.50. EURJPY Dominant bias: Bearish This market dropped over 140 pips this week, breaching the demand zone at 136.00. The demand zones at 135.50 and 135.00 may be tested, but are likely to support the bullish effort as most JPY pairs are open to a rally this week. Should this prove correct, price may reach the supply levels at 137.00 and 138.00
Posted on: Sat, 18 Oct 2014 03:32:52 +0000
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