Here’s the market outlook for the week:

EURUSD

Dominant bias: Bullish   

From Monday till Wednesday, this pair moved south. Price broke upwards on Wednesday as it rose significantly by 280 pips that day and on Thursday. On Friday, price got corrected lower a bit, closing at 1.1269.  However, the outlook on EUR is bearish for this week, and bulls would experience serious difficulties in pushing price further upwards. This weakness could also be witnessed on other EUR pair like EURCAD and EURNZD.

USDCHF

Dominant bias: Bearish

Last week, USDCHF took a serious battering as prognosticated, given what also happened to USDCAD, EURUSD, GBPUSD, NZDUSD, AUDUSD, etc. After consolidating from Monday to Wednesday, price dropped like a stone on Wednesday and Thursday, testing the support level at 0.9650. While further southward moved is not ruled out, the situation could change this week, especially in the case of EURUSD, for USDCHF might rally considerably when EURUSD trends downwards seriously.   

GBPUSD

Dominant bias: Bullish    

Cable was subjected to strong movements last week. From Monday to Wednesday, price dipped by 320 pips, later to rise on the same day. Within Wednesday and Thursday, price went upwards 440 pips. But bulls have met a stubborn opposition at the distribution territory of 1.4500; they could not push the price beyond that accumulation territory. Should bulls succeed in pushing price beyond 1.4500, the next targets would be the distribution territories at 1.4550 and 1.4600. There are also probabilities of pullbacks along the way.  

USDJPY

Dominant bias: Bearish

USDJPY, which was quite choppy in the last few weeks, gave in to gravity last week. Price dropped by 300 pips, ramming into the demand level at 111.00.  Although there is a clean Bearing Confirmation Pattern in the market, price could rally this week. After all, price has been unable to close below the demand level at 110.00 as it bounced off that level. JPY pairs are expected to rally this week, and USDJPY may not be an exception. So it is rational to assume that the bearish journey that occurred last week simply paved way for the bullish journey that could occur this week.

EURJPY

Dominant bias: Bullish

This cross consolidated throughout last week, not moving significantly upwards or downwards. This bullish outlook is still somewhat valid despite the ongoing consolidation, though a breakout is imminent this week. When a breakout occurs, it would most probably favor bulls, because the outlook on JPY pairs is bullish for this week. Traders are advised not to trade against JPY pairs this week.     

This forecast is concluded with the quote below:

“We hope your January through February proves to be profitable. After one more month, March, you can evaluate your quarterly trades to make adjustments. If adjustments are necessary, make sure that they align with your trading plans.”– Tradingeducators  

Source: www.tallinex.com