EUR/USD Forecast January 28, 2013, Technical Analysis

The EUR/USD pair had a strong session on Friday, and even threatened to break above the 1.35 handle. In the end it did not however, and as a result that barrier still stands. However, it does look increasingly likely that the 1.35 level will be broken, and this would in turn show a breaking of the neckline from an inverted head and shoulders that could see this pair going as high as 1.50 over the longer term. We obviously can’t sell this pair right now, as it is far too bullish. With that being said, pullback should be a buying opportunity, and obviously a daily close above 1.35 would have us not only bullish this market, but willing to hang onto the trade for ages as well.

EUR/USD Forecast January 28, 2013, Technical Analysis

Credit : FX Empire Analyst - Christopher Lewis

Weekly Price Action Trading Outlook for January 28th to February 1st 2013

Daily Forex Trading Commentary by Nial Fuller 

Weekly Price Action Trading Outlook for January 28th to February 1st 2013

EURUSD – Euro/dollar breaks up from recent consolidation, looking for buy signals

In last Wednesday’s commentary, we discussed the need to see a confirmed breakout one way or the other from consolidation in the EURUSD to open the door for a larger directional move. On Friday, that breakout occurred as the market surged up through 1.3400 and closed well above the previous consolidation range between 1.3400 – 1.3260. The uptrend is clearly still healthy and intact in this market and so this week traders can watch for price action buy signals forming after a rotation back to support / value. The closest and most obvious key support / value area is that previous consolidation between 1.3400 – 1.3260, if we do see price rotate lower this week traders should keep a close eye out for price action strategies forming within that zone to trade back in-line with the uptrend.

AUDUSD -  Aussie/dollar loses ground and falls into support

The AUDUSD has moved lower since we last discussed it in last week’s weekly outlook. This market is basically in a trading range and has really not been providing many good setups to trade recently as it oscillates between support and resistance. The market did hit support near 1.0400 on Friday and whether or not that support holds early this week will be important in setting this week’s tone. If the market can hold above that support we could see a grind back up towards resistance, but if it breaks lower we would then watch 1.0345 as the next key support level. If the market breaks below that 1.0345 level it would signal some serious weakness and could be an indication of a larger move lower.

USDJPY – Dollar/yen up trend still intact, weakness is seen as a potential buying opportunity

The USDJPY uptrend continued to roll on last week, as did the up trends in the other major yen pairs. Our bias for the USDJPY and other yen pairs has not changed; look to buy on weakness pending price action confirmation. In other words, if price rotates down to dynamic 8 / 21 daily EMA support or horizontal support, we will keep our eyes peeled for 4 hour or daily chart price action buy signals to join the uptrend. We want to trade with the trend until it clearly comes to an end, if you need more help on trend trading, checkout this article on how to trade with the trend.