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Weekly Outlook for Week of Nov. 2nd

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
This pair moved sideways during the first few days of last week, and then price broke down again on October 28 to reach the support line at 1.0900. From that point, price has bounced upwards a bit and tested the resistance line at 1.1050. The bias on this pair remains bearish and further downwards movement is possible during November – principally because the outlook on USD is bright for the month.

USDCHF
Dominant bias: Bullish
USDCHF went upwards quite smoothly last week – reaching the resistance level at 0.9950. However, bulls have been unable to push price above that level and price eased by almost 100 pips to test the support level at 0.9850. USDCHF should continue upwards this month – possibly reaching the great psychological level of 1.0000 and achieving parity with USD, given the bullish expectation on USD for this month.

GBPUSD
Dominant bias: Bearish
GBP will see strong, fast movements this month as bulls and bears struggle for supremacy – something that will also be visible on other GBP pairs. Price tested the accumulation territory at 1.5250 before spiking upwards on Friday. Despite the spike, the bias is still bearish, though movement above the distribution territory at 1.5500 could end the current outlook – until that happens, long trades are not recommended.

USDJPY
Dominant bias: Bullish
USDJPY made no serious directional movement last week – just transitory upswings and downswings. If this kind of price action continues this week then the market could enter another equilibrium phase. Nonetheless, the bullish bias is expected to continue this month (certain JPY pairs will make attempts to rally in November, but not AUDJPY and NZDJPY, because the outlook on AUD and NZD is strongly bearish for the month of November).

EURJPY
Dominant bias: Bearish
This pair cannot make any significant bullish movement while the Euro remains very weak, and there is still a Bearish Confirmation Pattern in the market: Long trades are illogical unless the supply zone at 134.00 is overcome. Until that happens, rallies can be viewed as short-selling opportunities. If the Yen becomes weaker than the Euro, a meaningful reversal would be witnessed. The Euro is expected to attempt rallies against some currencies in this month, though not against the Greenback.

 

Source: www.tallinex.com