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Weekly Outlook for Week of October 31st – November 4th

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
This pair moved sideways last week before trading upwards on Friday, but the move was too insignificant to result in a bullish signal so the bias remains bearish with Friday’s move appearing to be a welcome short-selling opportunity as the outlook for EUR pairs is bearish for this week. Barring a large pullback on USDCHF( unlikely ), price may test the support lines at 1.0900, 1.0850 and 1.0800 this week.

USDCHF
Dominant bias: Bullish
Price managed to climb above the resistance level at 0.9900 before being pushed back below. This marketplace has been consolidating for 2 week, but the bullish outlook remains valid. USD is bullish for this month, so most major currencies will weaken against it and means the very difficult resistance level of 1.0000 could be breached, but that will require lots of buying pressure and failure may result in a pullback.

GBPUSD
Dominant bias: Bearish
Cable has moved sideways for 2 week- resulting in a neutral short-term bias but the long-term bias remains bearish. The outlook is bearish for this week, so rallies should be disregarded- they will be transitory and unable affect the long-term bearish outlook. November should ensure large motions on GBP pairs that will be bearish in most cases.

USDJPY
Dominant bias: Bullish
As mentioned in the last forecast, this marketplace has become bullish. Price moved upwards by 170 pips last week and tested the supply level at 105.50. The bearish correction on October 28 was just another opportunity to buy long at a better price in the context of an uptrend. The most probable direction for JPY pairs the coming week is up.

EURJPY
Dominant bias: Bullish
Despite weakness in the Euro, price rallied 230 pips last week and shut at 115.11 on Friday after forming a clear Bullish Confirmation Pattern on the 4-hour chart. The charts indicate willingness to push further north, which may permit the supply zones at 115.50, 116.00 and 116.50 to be reached this week.

source: tallinex