Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

EURUSD assumed its southward journey on January 2, 2015, going further and further south in the following week. Price went below the support line at 1.1800, and then consolidated until the end of the week. There is now a slight rally, which could portend the start of buying pressure when price crosses the resistance line at 1.1900 to the upside, going towards another resistance line at 1.2000. The support lines at 1.1800 and 1.1700 remains a barrier to further southward movements.                      

USDCHF

Dominant bias: Bullish   

Since USD reached parity with CHF, this pair has moved further upwards by 200 pips, enabling price to test the resistance level at 1.0200. There is a minor pullback in the market, which could mean the beginning a near-term bearish run, provided that the great support level at 1.0000 is unable to contain more bearish correction. On the other hand, a break above the resistance line at 1.0200 could mean the continuation of the existing bias.

GBPUSD

Dominant bias: Bearish

The market is bearish, going downwards by over 200 pips on January 2, 2015, and going further downwards by over 200 pips last week. The accumulation territory 1.5050 was tested before the current upwards bounce in the market. The upwards bounce has taken price above the accumulation territory at 1.5150. While it is possible for price to reach the distribution territory at 1.5250, the probability of pullbacks reaching the accumulation territory at 1.5050 again exists.

USDJPY

Dominant bias: Bearish  

USD/JPY remains volatile, with short-term victories of the bulls and the bears. In the past few weeks, this pair has been unable to remains above the supply level at 120.50, and as a result of this, the near-term bias has become bearish. In the face of the recent swings in the market, the demand levels at 118.00 and 117.50 could be tested. The supply levels at 120.00 and 120.50 should also act as impediment to rallies in the market. 

EURJPY

Dominant bias: Bearish

Since the beginning of this month, this current trading instrument has moved south by more than 450 pips, which contributed to the strong Bearish Confirmation Pattern in the market. On Friday, January 9, 2015, price closed at 140.32, on a bearish note.  Since it closed below the supply zone at 140.50, it may be easier for the demand zone at 139.50 or 139.00 to be tested, although there could be a strong rally after that.

This forecast is concluded with the quote below:

“Realize that there is no holy grail and that a simple approach with proper money management can actually work.”– Dave Landry