Weekly Trading Forecasts on Major Pairs (February 2 - 6, 2015)

Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

The outlook on this market remains bearish. Price made serious bullish attempts, reaching the resistance line at 1.1400 and then consolidated till the end of last week; all in the context of a downtrend. This week, the downward trend can continue, enabling price to reach the support lines at 1.1200 and 1.1150 respectively. Only a break above the resistance line at 1.1450 could render the existing bearish outlook invalid.                    

USDCHF

Dominant bias: Bearish   

The long-term bias on USD/CHF is bearish, but in the near-term the bias is bullish. For the past two weeks, the market has been going upwards in a slow and steady manner as, forecasted earlier. Should this slow and steady bullish journey continue for the next few weeks, the overall bias could turn bullish. However, occasional but transitory pullbacks are expected in the journey to the upside.

GBPUSD

Dominant bias: Bearish

On Cable, it can be seen that last week was characterized by a serious battle between the bulls and the bears, which resulted in serious swings in the market. Price reached a high of 1.5222 and a low of 1.4987 last week. There is a distribution territory at 1.5200; plus an accumulation territory at 1.5200. Further weakness can make Cable reach the accumulation territory at 1.5000 again. Overall, the outlook is bearish and it would remain so: unless the distribution territory at 1.5200 is breached to the upside and price is able to remain above it.

USDJPY

Dominant bias: Bearish  

There was no much activity in this market last week; except occasional short-term upswings and downswings in the market. This week, it is either the supply level at 119.00 is breached to the upside or the demand level at 117.00 is breached to the downside. A breach of the former would result in a new lease of bullish energy, and a break in the latter would result in a strong Bearish Confirmation Pattern in the market. But right now, this is an equilibrium market.

EURJPY

Dominant bias: Bearish

Despite significant attempts from the bulls to push up the price last week, the outlook in the market is bearish. From the demand zone at 130.50, price went upwards, reaching the supply zone at 134.00. On Friday, January 29, 2015, price closed at 132.66, on a bearish note. The weakness in this cross is still in place - only a break above the supply zone at 135.50 could really endanger the extant bearish outlook.

This forecast is concluded with the quote below:

“Since the market provides us with an infinite number of opportunities—and will continue to do so as long as human nature remains what it is, only fill your bowl with what you can carry on each trade.” – Dr. Ken Long

Source: www.tallinex.com

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