Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

EURUSD trended downwards last week, closing below the resistance line at 1.2200. Since the recent bullish attempt was rejected at the resistance line of 1.2550, price has dived by over 360 pips, resulting in a very strong Bearish Confirmation Pattern in the market. The bearish bias may continue till the end of this year, enabling price to test the support lines at 1.2150 and 1.2100 respectively.                  

USDCHF

Dominant bias: Bullish   

This pair has continues its upward journey in a slow and gradual manner (thanks to the ongoing strength in Greenback). Since the recent bearish pull was rejected around the support level at 0.9550, price has skyrocketed by more than 320 pips, closing above the support level at 0.9850 last week. The next victim of the bulls’ assault is the resistance level at 0.9900, which could even be breached to the upside as price can target another resistance level at 0.9950, especially with the continuation of the strength of the USD. Could the USD ultimately reach parity with the CHF? This seems likely.

GBPUSD

Dominant bias: Bearish

This is also a bear market. It fell towards the accumulation territory at 1.5500 before the current upward bounce happened in the market. Price is currently hovering around the distribution territory at 1.5550, not being able to go far above it at the present. Price may go south from here, testing the accumulation territory at 1.5500 again. Technically, further upward bounce may be rejected at the distribution territory of 1.5600.

USDJPY

Dominant bias: Bullish  

This is a strong currency trading instrument, supported by the Bullish Confirmation Pattern in the market. Price trended upwards last week and consolidated till the end of the week. Being above the demand level at 120.00, further northward movement is expected here – which can continue into January 2015.    

EURJPY

Dominant bias: Bearish

This cross ought to be bullish just like some other JPY pairs, but the weakness in Euro is still very much. In spite of the effort by the bulls, the bears still flex their muscles conspicuously. Price is currently threatening to go down, with the possibility of testing the demand zone at 146.00. Should the bears lose out suddenly, price can try the supply zone at 148.00.

This forecast is concluded with the quote below:

“One thing that never changed was my need for inner freedom. I believe to this day that trading is the most interesting vehicle to enjoy ultimate freedom. I am not only talking about financial freedom. That’s a mere bagatelle in comparison to the emotional freedom I received as a present along the trading way.”- Mercedes Oestermann van Essen