Here’s the market outlook for the week:

EURUSD

Dominant bias: Bullish

This market moved upwards by over 210 pips this week, after testing the support line at 1.2250. All indication points to the fact that short trades are no longer logical in the near-term. It is possible that the bears would gain control again before the end of this year, but right now, the outlook is bullish. A Break above the resistance line at 1.2500 would mean a stronger formation of the current bullish action.

USDCHF

Dominant bias: Bearish   

The weakness in the USD has enabled this pair to go downwards this week. Price tested the resistance level at 0.9800, but it could not close above it. From that resistance level, the pair trended downwards by around 160 pips, going below the resistance level of 0.9650. From here, the pair may reach the support level at 0.9600, and should the support level get broken to the downside. It would mean that the bulls have become powerless for now.  

GBPUSD

Dominant bias: Bullish  

Cable went bullish this week, moving upwards in a slow and steady manner, and then moving sideways until the close of the market. Price closed at 1.5715 on Friday, December 12, 2014; above the accumulation territory at 1.5700. The distribution territory at 1.5750 has been tested and it could be tested again. With more strength in the market, another distribution territory at 1.5800 could be tested eventually, for that is the target for the bulls in the short-term. One thing, however, should be noted: Cable could become weak again before the end of this year. 

USDJPY

Dominant bias: Bearish

USDJPY managed to go above the supply level at 121.50, but further bullish movement was rejected as price dived by more than 400 pips, testing the demand level at 117.50. It may look as though the bearish effort has been rejected at that demand level; nevertheless, the level could be tested again. It could even be breached to the downside.     

EURJPY

Dominant bias: Bullish

The situation on this cross is currently dicey. EUR is making effort to go bullish and JPY is nether weak.  The market dropped seriously, which was contained at the demand zone of 146.50. From that demand zone, price has gone upwards by 150 pips, besieging the supply zone at 148.00. It is very much likely that the supply zone would give way, thus enabling the market to go towards another supply zone at 149.00.

This forecast is concluded with the quote below:

“People often underestimate their ability and their right to be a trader… It is about a state of mind. Having the belief you can win in trading and controlling your emotions to think clearly even when things are going against you, this makes a professional trader.” – Steve Ruffley