Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

In this market, the bullish effort last week was rendered useless when price headed back towards the support line at 1.1300, which was an important support line last week. This support line may be slashed this week; plus the target for the bears is located at the support line at 1.1200. Unless price breaches the resistance line at 1.1500 to the upside and closes above it, it would be assumed that bearish pressure remains in force.                 

USDCHF

Dominant bias: Bullish    

USD/CHF has been moving upwards slowly since January 15, 2015. The perpetual upwards movement has been strong enough to enable the bias to turn bullish. Although this pair is currently far from reaching the level it was prior to the January 15 magnificent earthquakes, price would continue its steady upwards journey. While journeying upwards, there would be occasional pullbacks, which would be transitory in nature.

GBPUSD

Dominant bias: Bullish

From the accumulation territory at 1.5000, this pair went upwards, reaching the distribution territory 1.5350. This market movement of 350 pips has been significant enough to bring about a Bullish Confirmation Pattern in the market. The accumulation territory at 1.5000 has become a formidable defense for the bulls because price has been unable to go breach it successfully in the last few weeks. Although there is a slight bearish correction in the market, it is expected that further bearish attempts would be stubbornly challenged at the accumulation territory of 1.5000.

USDJPY

Dominant bias: Bullish   

This currency trading instrument experienced a northward breakout last week. Before this event, the market had been moving in a tight range for a few weeks, not being able to close below the level at 117.00 or above the level at 119.00. The upward break that occurred last week has enabled price to close above the demand level at 119.00 on Friday, February 6, 2015. Price closed at 119.15 and it could resume the northward journey this week, for the signal in the market is currently a “buy.”

EURJPY

Dominant bias: Bearish

The uncertainties surrounding the Euro are one of the reasons why this popular cross has not gone seriously bullish, although the efforts of the bulls can be perceived in the market. The existing bearish bias is potentially in danger, for the outlook on most JPY pairs is now bullish. A break above the supply zone at 136.00 would mean the beginning of a smooth northward movement; otherwise things remain downbeat.

This forecast is concluded with the quote below:

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