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Market Outlook for Week of Oct. 12th

Here’s the market outlook for this week:

Dominant bias: Bullish
EURUSD went north last week – closing above the support line at 1.1350, which seems to have ended the recent choppy movement in this market. It is much more likely that this pair will continue upwards this week – breaking above the resistance lines at 1.1400 and 1.1450, while the support lines at 1.1300 and 1.1250 help defend the current bullishness.

Dominant bias: Bearish
This market has become bearish – dropping from the resistance level at 0.9750, and testing the support level at 0.9600, which has led to a bearish signal in the market that may enable price to continue further south. As long as EURUSD keeps on going up, USDCHF will be under selling pressure. The support line at 0.9600 has already been tested, and could be re-tested – possibly even broken as price targets the support line at 0.9500.

Dominant bias: Bullish
Contrary to the sideways movement witnessed two week ago, GBPUSD showed some bullish movement last week and there is no longer a bearish outlook on this pair. Price rose from the accumulation territory at 1.5150 and closed above the accumulation territory at 1.5300 (though it briefly went above the distribution territory at 1.5350). The outlook for this week is bullish (which applies to all GBP pairs) so we may see price attaining the distribution territories at 1.5450 and 1.5500.

Dominant bias: Neutral
This pair is still managing to avoid any serious directional movement – price just vacillates between the supply level at 121.00 and the demand level at 119.00. This has been going on for several weeks, but the present consolidation is sure to end this month – possibly this week. When a breakout eventually does happen, it will most likely be to the upside.

Dominant bias: Bullish
The rally on this pair caused a nice Bullish Confirmation Pattern and, on Friday, price closed on a bullish note at 136.58. That means this cross is much more likely to continue going upwards, so a northward move of at least 200 pips could be witnessed this week. The outlook on JPY pairs is bullish for this week – partly owing to the ongoing weakness in JPY.