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Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
Last week, this pair rose from the support line at 1.2250 and tested the resistance line at 1.2550 (a movement of 300 pips). After the resistance line at 1.2550 had been tested, price got corrected by 140 pips, closing below the resistance line at 1.2450 and now very close to the support line at 1.2400. The current bias on the market is bullish, but that can change this week, because there is a strong likelihood that EUR pairs would become very weak this week. Rallies would be contained at the resistance line at 1.2550, and price could drop towards the support lines at 1.2350 and 1.2300 this week. These targets could even be exceeded.
USDCHF
Dominant bias: Bearish
USDCHF remained under strong bearish pressure last week. Price consolidated on Monday, and started coming downwards on Tuesday, to reach the demand level at 0.9200 on Friday. The upwards bounce that is in place was made possible by a sharp pullback on EURUSD. Bearish attempts would be halted at the support level of 0.9200; while price targets the resistance levels at 0.9300, 0.9350 and 0.9400. However, there could be a limited bullish movement because USD would not be very strong this week.
GBPUSD
Dominant bias: Bearish
Cable is not currently in a bullish mode. The rally that was witnessed last week might have led to a bullish bias if not for the pullback that occurred on Friday. Price rose indeed – from the accumulation territory at 1.3800, nearly reaching the distribution territory at 1.4150, but further northward journey was halted. The distribution territory at 1.4150 has already become a barrier to further bullish movement: The market is supposed to move downwards this week. The outlook on GBP pairs is somewhat bearish for this week.
USDJPY
Dominant bias: Bearish
USD/JPY was engaged in a smooth, clean bearish movement last week. Since January 9, the market has gone downwards by 720 pips (losing at least, 300 pips this month alone). There is a strong Bearish Confirmation Pattern in the market, it is expected that price should be able to go below the demand levels at 106.00, 105.50 and 105.00, and remain below it… The outlook on JPY pairs remains bearish.
EURJPY
Dominant bias: Bearish
From the top of 137.50, this cross has nosedived by at least, 550 pips. Last week, the movement of the market was a kind of choppy and sideways (in the context of a downtrend), but bears were able to pull their weight, since price closed below the supply zone at 132.00. The outlook on the market remains bearish, and that might even be aided by a weak EUR. The demand zones at 131.50 and 131.00 are the initial targets for the week.
GBPJPY
Dominant bias: Bearish
On February 2, the market reach the monthly high of 156.50, and it has dropped 800 pips since then, reaching a low of 148.00. Although the market movement is rough, the bearishness in the market is clearly visible. This week, the market should continue moving southwards, but not without attacks from bulls (which could cause temporary upwards bounces in). The targets for the week are located at 148.50, 148.00 and 147.50.
This forecast is concluded with the quote below:
“A trading edge is created by a harmonious combination of choices made by each trader to exploit recurring market inefficiencies and thereby create a long-term mathematical advantage. The unique objectives, beliefs, and skills of each trader are key to all edge choices and to integrating the edge into an effective trading methodology.” – VTI
Source: www.tallinex.com
Traders’ realities: http://www.advfnbooks.com/books/unlockpotential/index.html
