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Weekly Outlook for Week of September 26th – 30th

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bullish
This pair is bullish in the short term, but neutral in the long term, so despite the volatility contraction in the higher time-frames, price managed to push above the support line at 1.1200. The next targets are the resistance lines at 1.1250 and 1.1300, though strong buying pressure will be needed to go beyond there. Meanwhile, the support lines at 1.1150 and 1.1100 will act as barriers to bearish attempts.

USDCHF
Dominant bias: Bearish
This market also has a neutral long-term view, but is currently bearish, so price mirrored EURUSD and pushed below the resistance level at 0.9750 to sit close to the support level at 0.9700. The targets for this week are the support levels at 0.9650 and 0.9600, but price will not breach that region without strong selling pressure, though resistance levels at 0.9750 and 0.9700 will act as barriers to attempted rallies.

GBPUSD
Dominant bias: Bearish
The dominant bias is still bearish and, as mentioned in the last weekly forecast, price declined last week despite desperate bullish opposition. Long trades are not logical right now because of the current price action, and because the outlook on GBP pairs remains bearish for this week, so the accumulation territories at 0.2900, 0.2850 and 0.2800 could be tested by Friday.

USDJPY
Dominant bias: Bearish
Consolidation marked the first few days of last week, followed by a mid-week drop and a slight correction around the end of the week, but the Bearish Confirmation Patterns in the 4-hour and daily charts signal further decline, so the demand levels at 100.50 and 100.00 could be tried this week. The bearish bias should hold until the supply level at 104.00 is overcome – something unlikely to happen anytime soon.

EURJPY
Dominant bias: Bearish
Price dropped significantly last week – briefly moving below the demand zone at 112.50 before a bullish effort in the context of a downtrend that could be seen as another opportunity to sell short at slightly higher prices (since the outlook is bearish). The demand zones at 113.00, 112.50 and 112.00 could be tried this week or next, and the only thing that can overturn the current bearish outlook is a 300-pip move to the upside.

 

 

Source: tallinex.com