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Market Outlook for week of July 27th

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
Although the dominant bias is bearish, this pair made some commendable bullish attempts last week. Price moved up almost 200 pips to test the resistance line at 1.1000. That resistance line is an important price area, since it must be broken for the current bullish effort to continue. Should that occur, a subsequent break of the resistance lines at 1.1050 and 1.1100 would result in a clean bullish bias. On the other hand, any failure to break the resistance line at 1.1000 could result in a strong bearish movement.

USDCHF
Dominant bias: Bullish
Last week, USDCHF was able to maintain its bullish stance despite the fact that EURUSD was also bullish, and was one of the rare occasions when EURUSD and USDCHF go in the same direction. However, things will soon go out of balance, and both pairs will go their separate ways. USDCHF might go further upward, but will be challenged by the resistance levels at 0.9650 and 0.9700. In fact, it is highly probable that CHF gains strength by the end of this month (which would also affect other CHF pairs), and cause USDCHF to start a smooth decline.

GBPUSD
Dominant bias: Bearish
This pair experienced a southerly movement last week. There is a bearish signal in the market, which is valid as long as the distribution territories at 1.5650 and 1.5700 are not breached. If those distribution territories are overcome, the current bearish signal will be invalidated.

USDJPY
Dominant bias: Bullish
This market traded sideways last week, though the bullish trend is not yet over. Should the market move sideways again throughout this week then the bias will become neutral, but price could soon go out of balance, resulting in a strong trending move. The Yen may become very strong before the end of this month – causing all JPY pairs to tumble, and turning USDJPY bearish.

EURJPY
Dominant bias: Bullish
>From the demand zone at 134.50, this pair moved upward by over 150 pips – slamming into the supply zone at 136.00. This caused a Bullish Confirmation Pattern in the market, but it could be short-lived, as the Yen may become very strong before the end of the month – causing bears to dominate the market.

Source: http://www.tallinex.com