Weekly Trading Forecasts on Major Pairs (February 3 - 7, 2014)

The new lease of energy in the Greenback has resulted in the weakness of the EURUSD and the strength of the USDCHF. The also has had impact on other major pairs, resulting in near violation of major biases in certain cases. The continuous strength in the Greenback could spur on the weakness of the EURUSD and the strength of the USDCHF; otherwise things may change.

EURUSD

Dominant bias: Bearish

Until recently, this pair was making attempts to trade northward, before it was affected by the strength in the Greenback (coupled with the fact that the Euro itself is weak). There is now a Bearish Confirmation Pattern in the chart, and the price is expected to continue trading southward for as long as the Bearish Confirmation Pattern is valid. The price could thus reach the support line at 1.3500.

USDCHF

Dominant bias: Bullish

The new lease of energy in the Greenback has resulted in the weakness of the EURUSD and the strength of the USDCHF. The also has had impact on other major pairs, resulting near violation of major biases in certain cases. The continuous strength in the Greenback could spur on the weakness of the EURUSD and the strength of the USDCHF; otherwise things may change. The USDCHF must stay above the support level at 0.9000, for the current bullish bias to be valid.

GBPUSD

Dominant bias: Bearish

The former bearish bias on this market was put in jeopardy as a result of the exponential weakness in the Cable. The new ‘sell’ signal in the chart has been confirmed and the price could go on towards the accumulation territories at 1.6450 and 1.6400 consecutively, especially in the face of perpetual weakness in the Cable. Meanwhile, the distribution territories at 1.6550 and 1.6600 would act as hurdles to bullish threats.

USDJPY

Dominant bias: Bearish

There are serious upswings and downswings on this currency trading instrument, but the bearish outlook on it remains unchanged. The demand level at 102.00 was tested last week and this week upwards from that level – with limited rallies – and it has often come back to the level. For the bearish outlook to remain more sensible, that demand level must be breached to the downside, while the price goes further towards another demand level at 101.50.

EURJPY

Dominant bias: Bearish

This cross has been weak since the beginning of this year and the price has dropped by over 450 pips. This week has also been bearish and next week would be like that. The USD seems to be having some stamina and the EUR is showcasing a sign of perpetual weakness, as the price goes below the supply zone at 139.00. It now heads towards the demand zone 138.00.

This forecast is concluded with the quote below:

“Seasoned traders report that they make the most profits when they aren't expecting them. They observe the markets openly and freely, and suddenly they make a profitable trade.” – Joe Ross

Source: www.tallinex.com

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