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Weekly Outlook for Week of December 26-30, 2016

Here is the market outlook for this week:

EURUSD
Dominant bias: Bearish
Price trended downward on Monday and Tuesday before a bullish attempt in the context of a downtrend. No strong moves are expected this week (though still possible), but whatever happens, there will be no end to the bearish outlook this year. In fact, the support lines at 1.0400 and 1.0350 may be tested.

USDCHF
Dominant bias: Bullish
Last week was just a directionless zig-zag, but the overall bias is bullish, so may favour an uptrend when momentum returns to the market. As with EURUSD, no strong moves are expected this week, but may occur. There are resistance levels at 1.0300 and 1.0350, but provided the psychological level at 1.0000 is not breached, the outlook will remain bullish.

GBPUSD
Dominant bias: Bearish
A drop of 250 pips occurred last week – emphasising the current weakness in this market. Price closed below the distribution territory at 1.2300 on Friday while targeting the accumulation territories at 1.2250, 1.2200 and 1.2150. There are currently huge Bearish Confirmation Patterns on the daily and 4-hour charts, which makes long trades illogical at present. A very strong bearish move may occur before the end of the year.

USDJPY
Dominant bias: Bullish
Despite consolidating throughout last week, the major bias is bullish, and that should continue until the end of the year. There may be a rise in momentum that pushes price towards the supply levels at 117.50, 118.00, and 118.50. These supply levels were already tested this month, and could be again. At this time, only a drop of about 200 pips can threaten the current bias.

EURJPY
Dominant bias: Bullish
Price trended downwards on Monday then moved sideways until the end of the week to close at 122.515. A directional movement is imminent but, other than for scalping, it is better to stay out until that occurs. Currently, any move below the demand zone at 120.50 will end the bullish bias, but breaking above the supply zones at 123.50 and 124.00 will strengthen it.

 

 

source: tallinex.com