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Weekly Outlook for Week of Nov. 7th-11th

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bullish
From a weekly low of 1.0935, cost climbed over 200 pips to close the week above the support line at 1.1100 and near to the resistance line at 1.1150, a breach of which would allow a shot at the 1.1200 and 1.1250 resistance lines. The bullish signal that has formed will remain valid until the support line at 1.1000 is broken.

USDCHF
Dominant bias: Bearish
Breaching the psychological level at 1.0000 proved too much for this pair- the attempt on October 25 speedily failed before parity was even tested. I mentioned that failure to breach parity might result in a serious pullback, and that was exactly what happened- cost pulled back significantly last week and shut below the resistance level at 0.9700 on Friday. The 210 -pip drop has resulted in a Bearish Confirmation Pattern and further decline is possible this week unless USD acquires some strength.

GBPUSD
Dominant bias: Bullish
Following a few weeks of consolidation, last week ensure a massive rally as cost jumped 370 pips to test the distribution territory at 1.2550. The bias has already turned bullish in the short term, but it will need another 1000 -pip move to the upside before the daily chart bias turns bullish. There is now strong buying pressure in the market, which should continue this week. Unless USD gains strength, cost might reach the distribution territories at 1.2650, 1.2700 and 1.2750.

USDJPY
Dominant bias: Bearish
Price consolidated on Monday and then plummeted on Tuesday- virtually testing the demand level at 102.50, and bringing an aim the recent bullish bias. The demand level at 102.50 will eventually be tested, and probably breached. However, there is also the possibility of JPY pairs building some bullish tries this week.

EURJPY
Dominant bias: Bullish
This pair scarcely moved last week and, unlike USDJPY, it engaged in a slight bearish correction in the middle of the week that was interrupted on Friday as the market shut on a bullish note. This week will be mostly influenced by the Euro- either causing a transgres above the supply zone at 115.50 or below the demand zone at 113.50.