Weekly Trading Forecasts (January 28 – February 1, 2013)

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EURUSD
Primary trend: Bullish
This instrument traded in an equilibrium zone for most of the week. Then there was an upside breakout on Thursday (January 24, 2013). Technical indicators are in support of a bullish outlook – something that could go further up. As more buying pressures come into play, the price would not find it difficult to touch the resistance line at 1.3400, and should this be broken upwards, the next target would be 1.3450.

© Mike Hodges

USDCHF
Primary trend: Bullish
In a rare circumstance (and it happens so), the USDCHF is in positive correlation with the EURUSD. This kind of rare scenario is, however, expected not to last too long. Based on the current rational outlook, it is probable that the USDCHF would trade downwards. It would be advised that speculators might want to stay out of this market until a clear bias is confirmed.

GBPUSD
Primary trend: Bearish
Strange enough, this Cable is currently trading in a negative correlation mode to the EURUSD pair. While the outlook for the latter is bleak, the outlook for the former is bright. This kind of rare condition is significant for a reason: if it does not end dragging down the EURUSD, the Cable itself will end up in a serious bullish breakout. This will happen sooner or later within the timeframe forecasted.

USDJPY
Primary trend: Bullish
Most analysts thought that the USDJPY had gone northwards too far, and that a breakdown was imminent. Owing to the consolidation that was characteristic of most of the last week, it was supposed that the trend would turn doggedly bearish. When logical traders were waiting for a confirmation of this, the price broke out to the upside. The price would continue going upwards and would not find it difficult to touch the psychological level at 100.00.

EURJPY
Primary trend: Bullish
Like the USDJPY (and most other JPY pairs), when bearish confirmation pattern was being awaited on the EURJPY cross, there was a significant breakout towards the north. Those who waited for a bearish confirmation before they could open a short trade were spared. That is why it is logical to wait for some confirmation before joining the trend. The price zone at 120.00 has been broken to the upside; the next target is easily 130.00.

Conclusion: Whatever happens in higher timeframes first started in lowers timeframes. A speculator who has gotten some time on her/his side ought to see the beginning of a new market bias and capitalize on it as soon as practicable. When the bias has run its course, the best of the time should have been made.

This article is concluded with the quote below:

“Initially, trading looked like a way to help me maintain my standard of living in retirement. That view began to shift as I progressed through my corporate career. I worked 60 to 80 hours a week, but when review time came around, I was getting less than 1%-2% in annual raises. I realized that if I learned how to trade well, I could put in less time and have a much better return on that time.” – Frank Eaves (Vantharp.com)

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