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Weekly Outlook for Week of Feb. 20-24, 2017

Here is the market outlook for this week:

Dominant bias: Bearish
Price declined from Monday to Wednesday – slipping briefly below the support line at 1.0550 before rallying above the resistance line at 1.0650 and finally correcting lower on Friday. Further bearish movement is expected this week as price targets the support lines at 1.0550 (tested last week), 1.0500 and 1.0450.

Dominant bias: Bearish
Oddly, the outlook is bearish – like for EURUSD. One of the reasons is occasional strength in CHF which checks any bullish ambitions. The 1.0000 level has now become insignificant as price moves above and below it at will, but only a very strong EURUSD plunge can push price upwards to any extent.

Dominant bias: Neutral
Price has been moving sideways for at least two weeks despite the outlook on GBP pairs remaining bearish, but this directionless meandering will soon end with a strong increase in momentum that pushes the market in a clear direction. Closer investigation shows that bears are currently strongest, so a plunge seems most likely.

Dominant bias: Bearish
In the context of a downtrend, price moved upwards from February 9 – 15 before beginning to pull back – closing below the demand level at 113.000 on February 17 and creating a Bearish Confirmation Pattern. The targets for this week are the demand levels at 112.50, 112.00 and 111.50, but that does not rule out the possibility of a strong rally before the end of the month.

Dominant bias: Bearish
This pair is bearish in the long-term and neutral in the short-term. After consolidating from Monday to Friday, price eventually plunged over 120 pips – realigning with the downward trajectory that started at the beginning of this month. Further decline is certainly possible, but so is the possibility of a serious rally on JPY pairs.