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Market Outlook for week of Sept. 14th

Here’s the market outlook for this week:

Dominant bias: Bullish
As anticipated in the last forecast, bulls successfully pushed EURUSD upwards following a few days of market consolidation – giving the resistance line at 1.1350 a close marking. If that resistance line is broken then the next targets for bulls are the resistance lines at 1.1450 and 1.1500.

Dominant bias: Bullish
This pair mostly moved sideways last week – remaining between the resistance level at 0.9800 and the support level at 0.9650. Bulls made futile attempts to push price upward, and bears also failed to dominate the market. Looking more closely at the current price action, it can be seen that the market is threatening to break downward, but any move will not be taken seriously unless the support level at 0.9600 is breached. Two factors will determine direction this week: What happens to EURUSD (which will most probably move further north) and/or the situation around CHF (which could make it strong this month).

Dominant bias: Bullish
GBPUSD made a sincere effort to go up last week, and it is possible for this pair to continue upwards this week due to the presence of a Bullish Confirmation Pattern in the market. The distribution territory at 1.5450 has already been tested and could now be broken, which could allow price to move up at least 200 pips this week.

Dominant bias: Neutral
Apart from a slight upward movement, there was no clear direction on USDJPY last week. Price closed in consolidation mode at 120.57 on Friday, so a breakout could occur any day this week. If price breaks above the supply level at 121.50 or below the demand level at 119.50 then there will be a clear directional movement.

Dominant bias: Bullish
EURJPY is now one of the most predictable of the majors which moved in a directional mode last week with a move north of 400 pips – now sitting close to the supply zone at 137.00. Given the ongoing weakness in Yen and strength in EUR, there is a high possibility of the uptrend continuing, which could enable the supply zone at 139.00 to be attained before the end of this week.