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Weekly Outlook for Week of December 5 – 9, 2016

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
Price consolidated throughout last week in the context of a downtrend. A closer look at the market reveals that there has been some upside bias that hints at a bullish attempt this week. The Euro should rally against most major currencies except the US Dollar, which is expected to continue strengthening this week. There are resistance lines at 1.0750 and 1.0800, and support lines at 1.0550 and 1.0500.

USDCHF
Dominant bias: Bullish
This pair consolidated with a downward bias last week. USD should remain strong this week and gain against various major currencies, but if CHF also gains strength this week then any significant rally will be difficult. There are resistance levels at 1.0150 and 1.0200, and support levels at 1.0050 and 1.0000.

GBPUSD
Dominant bias: Bullish
A two-week equilibrium phase ended with a well-anticipated and significant break to the upside of some 330 pips – slashing through the accumulation territory at 1.2700 and closing above it. This week should see rallies against majors like NZD and AUD, and possible continuation of the current rally against USD.

USDJPY
Dominant bias: Bullish
Price went up 300 pips last week – testing the supply level at 114.50, but unable to move beyond. Some bearish correction occurred on Friday, but the bullish outlook is far from over so further gains are expected – possibly targeting the supply levels at 115.00 and 115.50.

EURJPY
Dominant bias: Bullish
There was a smooth uptrend last week that peaked at 121.88 before closing below the supply level at 121.50. There is a Bullish Confirmation Pattern in the market so further bullish movement could occur this week. Possible targets are the supply zones at 122.00, 122.50 and 123.00, while the demand zones at 120.00 and 119.50 act to hinder strong pullbacks.

 

 

source tallinex.com