Weekly Trading Forecasts for Major Pairs (February 6 - 10, 2017)
5 February 2017, 19:24
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSDDominant bias: Bullish
The resistance line at 1.0800 was reached last week, but price could not remain above it (despite several attempts), and that is a requirement to save the current bullish bias as failure will eventually result in a large pullback.
USDCHF
Dominant bias: Bearish
Price has been trudging south since the beginning of the year (a drop of roughly 350 pips so far), and that will continue while EURUSD heads north as only a serious pullback on EURUSD can bring a meaningful rally here. However, with CHF expected to strengthen this month and the resistance level at 1.0000 likely to impede rallies, it will be difficult for a strong rally to take hold.
GBPUSD
Dominant bias: Bullish
Attempts to climb were rejected at the 1.2700 distribution territory - resulting in a correction of over 200 pips that closed the week above the accumulation territory at 1.2450. An upward move will save the recent bullish bias, while further decline will render the bias invalid - the most likely outcome, as GBP pairs are expected to decline this month.
USDJPY
Dominant bias: Bearish
The current bias is bearish because price has been trending downwards since the beginning of the year - more than 500 pips, in fact, and is approaching the major demand levels at 112.00 and 111.00 which could be tested or breached. There is a strong possibility that JPY pairs will rally this week (most likely between Monday and Wednesday) - if so, this market will rally quite seriously.
EURJPY
Dominant bias: Neutral
Although the bias is neutral, there are bearish signals on smaller timeframes, but the neutral bias could turned bullish from the expected rally on JPY pairs. Price may temporarily reach the demand zones at 121.00, 120.50 and 120.00, but a serious rally could push price upwards by a minimum of 200 pips this week.
I’d like to conclude this forecast with the following quote:
“Don't let another year go by where you aren't inspired to cash in on everything the markets have to offer.” - Louise Bedford
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
St Vincent and the Grenadines
https://www.tallinex.com
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