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Market Outlook for Week of Sept. 21st

Here’s the market outlook for this week:

Dominant bias: Bullish
Despite being trendless at the start of last week, high volatility moved price rapidly upwards on Thursday, only to be corrected on Friday. However, the outlook is bullish for most Euro pairs, so price could reach the resistance lines at 1.1450 and 1.1550 this week.

Dominant bias: Bearish
USDCHF also consolidated in the early part of last week, then broke down on Thursday and bounced upwards again on Friday, but the overall bias remains bearish. As long as EURUSD is strong and CHF refuses to weaken to any significant degree, it will be difficult for USDCHF to produce a meaningful rally – especially as the resistance level at 0.9800 is a strong bullish barrier.

Dominant bias: Bullish
>From the accumulation territory at 1.5350, price ran up 300 pips to test the distribution level at 1.5650 before correcting by 110 pips. It may be difficult pushing further upwards this week, but the uptrend will remain valid until the accumulation territory at 1.5350 is broken.

Dominant bias: Neutral
There is still no clear direction for USDJPY, as price made no large directional movement last week. A strong breakout is possible this week, and will most probably be downward due to a measure of weakness in USD and a bearish expectation on some JPY pairs, but the demand levels at 119.00 and 118.50 and supply levels at 121.50 and 122.00 should be taken into account.

Dominant bias: Bullish
In spite of the bearish correction that occurred on Friday, there is still a Bullish Confirmation Pattern in the market that will not be violated until price crosses the demand zone at 134.50, but for EURJPY to trend upward this week, exceptional strength in the Euro (plus a measure of weakness in the Yen) will be needed. Without those things, a serious bearish movement could start before the end of the week.