Weekly Forex Market Outlook- December 29th - January 2nd, 2015

EURUSD – Euro/dollar bears still in control
The EURUSD fell modestly lower last week in what was a pretty quiet trading week due to the Christmas Holiday. This week will also likely be relatively quiet due to the New Years Holiday on Thursday. However, our recent bearish bias remains and any strength whilst under the key resistance at 1.2570 is still seen as a potential selling opportunity in order to rejoin the downtrend from value.


GBPUSD – Sterling/dollar weakness persists
The GBPUSD is pretty similar to the EURUSD right now. Price is still in a clear downtrend and whilst it’s contained under the key resistance level at 1.5785, we will watch for price action selling opportunities to rejoin the downtrend from value.


AUDUSD – Aussie/dollar downtrend approaching support
The AUDUSD monthly chart shows us a longer-term view of this current downtrend and we can see price is quickly approaching a key support level near 0.8050. Given the magnitude of the current downtrend we are currently only interested in selling opportunities but it’s certainly possible price stages a modest rally off this support. If that happens, we will look to sell the rally from resistance on the daily or 4 hour chart to rejoin the downtrend from value.

USDJPY – Dollar/yen uptrend continues
The USDJPY had a solid run higher over the last seven days after finding support down near 115.50 and bouncing aggressively from that level. In the near-term, our bias is still bullish and we view that 115.50 support as a key level to watch, and whilst price is above that level we will look for price action buy signals on any weakness.