Here’s the market outlook for the week:

EURUSD

Dominant bias: Neutral

This market is not currently favorable for swing trading, except intraday trading or scalping. This is because the market has not moved protractedly in a vivid direction for weeks. There is a support line at 1.1300 and a resistance line at 1.1450, and a break below that support line or that resistance line would determine the next direction of the market, especially when price closes below the support line at 1.1300 or closes above the resistance line at 1.1450. A close above the resistance line at 1.1450 is more probable because there is a possibility that EUR would rally this week.  

USDCHF

Dominant bias: Bullish    

The movement on this pair is more conspicuous than the movement on EURUSD. In order to see what this market is doing more clearly, it is better to use timeframes that are smaller than the daily chart and the 4-hour chart, like the hourly chart or the 30-minute chart. The bias on USDCHF is bullish in the near-term and price moved upwards by 200 pips last week, reaching the resistance level at 0.9500. From that resistance level, price experienced some bearish retracement of 140 pips, making it to close below the resistance level at 0.9400. Further southward correction could make the near-term bias on this pair turn bearish.  

GBPUSD

Dominant bias: Bullish

Although the bias on the Cable is still bullish, we may see some weakness in this currency trading instrument this week. On Friday, February 20, 2015, price closed at 1.5396, leaving a lower high formation in the market. While price may reach the distribution territory at 1.5500, the northward movement can be limited this week because a possibility of downward movement is greater.

USDJPY

Dominant bias: Neutral   

This market has not moved significantly recently and therefore, price is in an equilibrium phase; being swayed by alternating buying and selling pressure, which is invariably transitory. The demand zone at 118.00 remains a good challenge to southward attempt and there is a possibility that the market can go above the supply level at 120.00.

EURJPY

Dominant bias: Neutral

This cross is also in an equilibrium phase. A price plunge on Friday was quickly followed by an ensuing rally. Price may continue going upward this week or next week, and a movement above the supply zone at 136.50 would result in a bullish Confirmation Pattern.   

This forecast is concluded with the quote below:

“Few financial markets generate as much excitement and profitability as the Forex market does.”– Cornelius Lukas