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Weekly Outlook for Week of Nov. 9th

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
This pair dropped 300 pips last week and tested the support line at 1.0700. The largest drop occurred on Friday following positive fundamental figures coming out of the US. The outlook on the pair remains bearish for as long as USD is strong. The Euro could rally against some currencies this month, but it is unlikely to rally seriously against the US dollar.

USDCHF
Dominant bias: Bullish
Movement of this pair has been pleasantly predictable and, as forecast last week, price achieved parity with the US Dollar following an upward move of 200 pips. There is a clean Bullish Confirmation Pattern in the market due to the current strength in USD and, as price has closed above the great psychological support level of 1.0000, it will not be easy for bears to breach that level again. In fact, further upward movement is expected from here.

GBPUSD
Dominant bias: Bearish
Last week, Cable was the strongest mover among the majors – falling by roughly 400 pips and testing the accumulation territory at 1.5050. Any upwards bounces that manifest should be seen as opportunities to sell short, because selling pressure is still quite strong and price should go down by at least another 200 pips this week.

USDJPY
Dominant bias: Bullish
Price moved smoothly upwards last week – especially on Friday, November 6th, and is now holding above the demand level at 123.00 – targeting the supply levels at 124.00 and 125.00. Since the outlook is bullish for most JPY pairs in November, it is logical to conclude that this uptrend will continue as the demand levels at 122.00 and 121.50 should check any large pullbacks.

EURJPY
Dominant bias: Bearish
Despite being fairly passive last week, this pair remains bearish. Price tested the demand zone at 131.50, but could not breach it, so this cross will remain weak as long as the Euro is. The most likely cause of upward movement would be weakness in the Yen, and that may manifest over the next two weeks as most JPY pairs are expected to be bullish this month. Regardless, predictable directional movements will be observed until the end of 2015.

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Source: www.tallinex.com