Market Analysis March 2020 - African Economic Empowerment Investment Club

EURUSD
Dominant bias: Bearish
May 30th saw a bullish correction of 200 pips in the context of a downtrend that breached the resistance line at 1.1800, but was not strong enough to override the current bias. The outlook for EUR pairs is strongly bearish for this week and for this month, so bulls should be careful.

USDCHF
Dominant bias: Bearish
Unusually, this pair has declined over the past few weeks, as it is normally negatively correlated with EURUSD. However, USD is expected to strengthen before the end of the week and should promote a strong bullish reversal that adds bearish pressure to EURUSD.

GBPUSD
Dominant bias: Bearish
Having dropped about 1,100 pips since April 17, the rally on Friday was insignificant. The outlook on GBP pairs is mostly bearish for June, so long trades may not make much sense this month. This pair tends to be positively correlated with EURUSD, so the accumulation territories at 1.3300, 1.3250 and 1.3200 should be reached before the end of the week.

USDJPY
Dominant bias: Bullish
The outlook is bullish in the long-term, but bearish in the short-term. The short-term bearishness is expected to override the current bias due to a strong bearish outlook on JPY pairs this month, so this pair will join the other JPY pairs which are already bearish.

EURJPY
Dominant bias: Bearish
Some 700 pips have been lost since April 16, which has resulted in a Bearish Confirmation Pattern. Price rammed into the demand zone at 125.00 last week, before climbing 300 pips without being able to form a confirmed bullish bias. A bearish reversal is expected this week due to weakness in the Euro and the bearish outlook on JPY pairs.

GBPJPY
Dominant bias: Bearish
The first half of last week saw price drop, only to rise into the end of the week. The major bias remains bearish, so the rally was an opportunity to sell short at a better price. Since GBP is weak and JPY is expected to gain strength, a bearish move of at least 500 pips (which may start before the end of this week) is expected during June.