Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

Although the recent bias on this market is bearish, it should be noted that bulls have been making effort to push price higher. Price consolidated last week and traded upwards a little, closing at 1.1390, on Friday, February 13, 2015            . The outlook for this week (and for the rest of the month) is bullish. A movement above the resistance line at 1.1500 would lead to a clean Bullish Confirmation Pattern in the market.   

USDCHF

Dominant bias: Bullish    

This market is currently volatile as bulls and bears engage in power tussle, leading to a vivid equilibrium movement. The current bias is bullish but there is a probability that the pair would no longer trade upwards in a significant mode this week. This is because EURUSD may move north, and as a result of this, the negative correlation effect may pose a challenge to the bullish bias, causing some pullbacks in the market.

GBPUSD

Dominant bias: Bullish

Cable - which assumed a bullish bias a few weeks ago – experienced a smooth bullish run at the latter end of last week. Price rose from the accumulation territory at 1.5200 and reached the distribution territory at 1.5400: a movement of 200 pips. The distribution territory at 1.5400 is currently being battered and it could give way for further northward trend. This week, price could challenge another distribution territory at 1.5500. 

USDJPY

Dominant bias: Bullish   

Last week, USDJPY rose from the demand level at 118.50, almost reaching the supply level at 120.50 (another move of 200 pips). From around the demand level at 120.50, the pair has dived, thereby rendering the effort of the bulls useless. Between the supply level at 119.00 and the demand level at 118.50, price has become volatile. Only a break below the demand level at 118.00 could render the recent bullish bias invalid. Without that, price may rise upward from here.

EURJPY

Dominant bias: Bullish

Indeed, this cross made some commendable effort to go upward last week. Short trades are not currently recommended in this type of market, because it is expected that the cross would continue to meander its way upwards this week and next week, although not without visible attacks from bears. This expectation is logical as long as price stays above the demand zone at 134.00.  

This forecast is concluded with the quote below:

“A trader who feels serene and relaxed can focus on looking for the best and safest trades.”– Dr. Alexander Elder