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Weekly Outlook for Week of Sept. 19th-23th

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
The market moved sideways from Monday to Thursday last week, and then slid 85 pips on Friday. Had that break down failed to occur then the short-term bias would have become neutral, but being bearish, price might test the support lines at 1.1100 and 1.1050 this week. The current bearish bias will remain valid until the resistance line at 1.1300 is breached.

USDCHF
Dominant bias: Neutral
Although price trended upwards on Friday, the move was not significant enough to result in a clear market bias. The resistance level at 0.9800 was tested and almost breached, so a move above the resistance line at 0.9850 will result in a bullish bias – an even stronger bias if the resistance level at 0.9900 is also breached, though that would be quite difficult at this point in time. Looking to the downside, a move below the support level at 0.9650 will cancel the neutral bias and result in a bearish signal.

GBPUSD
Dominant bias: Bearish
Price dropped 280 pips last week to close below the distribution territory at 1.3000 on Friday. The market bias is bearish in the long- and short-term, and a Bearish Confirmation Pattern now exists, so price is expected to reach the accumulation territories at 1.2950, 1.2900 and 1.2850 this week (unless something fundamental changes the stance). All GBP pairs (except EURGBP) are currently bearish.

USDJPY
Dominant bias: Neutral
This market remained between the demand level at 103.50 and the supply level at 101.50 last week, resulting in a neutral bias in the near-term. This week, the most probable direction is down, which will become evident as momentum increases. There is a strong indication that all JPY pairs will turn bearish this week – in conjunction with their long-term bearish outlooks.

EURJPY
Dominant bias: Bearish
Price declined on Monday and recovered on Tuesday. Wednesday saw the market top at 116.08 before a 200 pip move south leading into the market close on Friday, which has resulted in a bearish signal. Since the outlook for JPY pairs is bearish, it is possible that the demand zones at 113.50 and 113.00 will be targeted this week.

Source: tallinex.com