Weekly Trading Forecasts for Major Pairs (February 5 - 9, 2018)
Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair did nothing significant last week: It only moved sideways. However, the bullish bias on the market has been maintained because bulls have been able to their own weight, and when a breakout occurs, it would take price above the resistance lines at 1.2500 and 1.2550. Possible pullbacks may not take price below the support lines at 1.2300 and 1.2250; otherwise a bearish bias would form.
USDCHF
Dominant bias: Bearish
USDCHF also consolidated last week, not going downwards significantly and not going upwards either. The bias on the market remains bearish, and there is a possibility that the support levels at 0.9200, 0.9150 and 0.9100 could be tested this week (when volatility arises). The resistance levels at 0.9400, 0.9450 and 0.9500 should hinder any serious rallies that may happen. Any breach of the resistance level at 0.9500 would result in a bullish bias.
GBPUSD
Dominant bias: Bullish
Cable moved downwards on Monday and Tuesday, went upwards on Wednesday and Thursday, and then went downwards again on Friday. The outlook on the market is bullish, but the current strong pullback in the market has become a kind of threat to the bias. A breach of the accumulation territory at 1.3950 would result in a bearish signal, while a movement above the distribution territory at 1.4350 would help strengthen the current bullish bias.
USDJPY
Dominant bias: Bearish
This trading instrument is bearish in the long-term, and bullish in the short-term. A short-term “buy” signal has been generated, because price has risen by 180 pips after testing the demand level at 108.50. This could be a start of a strong bullish journey, since price may rise further towards the supply levels at 110.50, 111.00 and 111.50. This even would result in an end to the current bearish bias.
EURJPY
Dominant bias: Bullish
Price made some faint bearish effort on January 29 and 30, as it briefly went below the demand zone at 134.50. However, the situation changed as a strong rally began on January 30. Price gained 300 pips, bringing about a bullish signal, and ending the recent consolidation in the market. The possibility of price going further upwards is very high this week. The next targets are the supply zones at 137.50, 138.00 and 138.50.
GBPJPY
Dominant bias: Bullish
There is a Bullish Confirmation Pattern on GBPJPY (although the market environment is quite volatile). In the first few days of last week, price took a dip, only to rally massively in the middle of the week. The pullback that occurred on Friday would turn out to be another opportunity to buy long and ride the market further north. It is important to note that the bias on JPY pairs is very bullish for this week – short trades are not currently advisable.
This forecast is concluded with the quote below:
“...Stay calm, try your best, and accept where the markets take you. Ironically, if you can identify and control what you can (such as risk management and a sound trading strategy), and accept what you cannot (the outcome of a trade), you will feel calm and be able to trade in a peak performance mindset. And the calmer you feel, the more open you will be to seeing the markets as they are, rather than what you want them to be.” – Joe Ross (Source: Tradingeducators)
Source: www.tallinex.com
