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Weekly Outlook for Week of Jan. 9-13, 2017

Here is the market outlook for this week:

Dominant bias: Neutral
There has been no significant trend for some weeks, so the bias has turned neutral. Moving upward about 200 pips will form a bullish outlook, but a drop below the support line at 1.0300 will bring about a clean bearish outlook. The bias will remain neutral while price oscillates between the resistance line at 0.0700 and the support line at 1.0300.

Dominant bias: Bullish
Price trended downwards last week (especially from January 3) then bounced and closed below the resistance level at 1.0200. The drop is a serious threat to the extant bullish bias, but the psychological level of 1.0000 must be breached before a Bearish Confirmation Pattern will form.

Dominant bias: Bearish
The short-term bullish attempt was foiled on Friday by a strong correction. The bias remains essentially bearish so rallies should be approached with caution as they will tend to be transitory. A valid bullish outlook needs the distribution territory at 1.3000 to be breached, and that would require a massive / protracted rally.

Dominant bias: Neutral
The short-term outlook has become neutral, though it remains bullish in the long term. The choppy conditions will soon end as a strong directional movement is assumed. Price needs to move above the supply level at 118.00 or below the demand level at 115.00 to confirm a logical short-term bias. The most probable direction for this week is upward.

Dominant bias: Neutral
Despite consolidating since early December 2016, there has been no significant trending yet. There is currently a weak effort to move upwards, but this could prove to be another fake-out unless the supply zones at 124.00, 124.50 and 125.00 are reached. Meanwhile, a move below the demand zone at 120.00 could result in a bearish signal.