Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish  

EURUSD only consolidated to the downside last week, in the context of a downtrend. There are resistance lines at 1.0750 and 1.0800, which could check rally attempts. There are also support lines at 1.0500 and 1.0450, which are the targets for bears, since further bearish movement is possible. Any rally attempts that happen in the market should be taken as false breakouts. It is expected that the Euro would be weak in December, and so EUR pairs would be bearish in most cases.  

USDCHF

Dominant bias: Bullish

This pair managed to go upwards by an addition of 100 pips last week – in solidarity with the extant bullish bias. Since the great psychological level at 1.0000 has been breached to the upside, price has moved northward by 300 pips, testing the resistance level at 1.0300. This bullish journey has a high probability of continuing this week, for the outlook on USD is bright for the month of December (and so is the outlook on CAD).        

GBPUSD

Dominant bias: Bearish   

GBPUSD moved further south last week, closing below the distribution territory at 1.5050. Yes, continuous southwards movement is expected for most past the month of December, even beyond the month. On GBPUSD, any rallies that are seen this month should be taken as short-selling opportunities, because the accumulation territories at 1.4900, 1.4800 and 1.4700 would be slashed in December. In fact, GBP would be seen falling sharply against other major currencies, and so, positions that favor GBP are not recommended.

USDJPY

Dominant bias: Neutral    

Since this currency trading instrument only moved sideways throughout last week, the outlook has become neutral in the near-term. A breakout is expected this week, which would either take price below the demand levels at 122.00 and 121.50; or take it above the supply levels at 123.50 and 124.00. For this movement to qualify as a serious breakout, price must close below the demand level at 121.50 or above the supply level at 124.00. Nonetheless, a breakout to the upside is much more likely, owing to the bright outlook on the US dollar.      

EURJPY

Dominant bias: Bearish

It has already been said that this cross would find it difficult to rally significantly as long as EUR is weak, unless JPY itself experiences an extraordinary loss in stamina. The EURJPY cross has demonstrated its willingness to continue moving south: There is still a Bearish Confirmation Pattern in the market. On JPY pairs, we would witness pleasant volatility and predictable movements in the month of December.   

This forecast is concluded with the quote below:

“Volatility and lucrative market movement should continue for many years to come, providing nearly endless opportunities for the well-prepared trader.” – Scott Andrews

Source: www.tallinex.com