G14 OUTLOOK FOR THE WEEK 03 FEB - 09 FEB

The main events of next week are the rates announcements from the ECB, BOE and BOA. I expect GBP to face a lot of pressure against most of the crosses. Also ECB’s interview on Thursday may be very important and initiate a long due correction to EURUSD.

EURUSD: The pair continued rising for another week establishing strongly the uptrend/ 1.338-1.40 is the next critical area. None the less is overbought and a correction before another leg up is long overdue. Remain neutral on this pair as risk rewards payoffs are not good. 

EURJPY:   The pair continued its bullish frenzy run. It has broken decisively the psychological 120,123 levels and close the week just below another critical level (127).  However a correction is long overdue and we may see it this week. If it happens it will be very sharp

EURAUD: The pair is taking advantage of the rise in euro. Bullish bias has finally been established.  The pair has started a nice uptrend and may climb very quickly to 1.40

EURCHF: The pair has finally start trading higher reaching 1.25 level. It has established a strong uptrend and it is expected to go higher testing the 1.30 level

USDCHF:   The pair failed to establish a bullish momentum due to the strong rise of the euro .As a result it gave another new fresh sell signal.  However I don’t think that there is a lot potential on the downside 

GBPUSD:  The pair had a terrible closing last Friday validating our sell signal even further. I expect to be under a lot of pressure the week ahead. Critical levels are 1.60 on the upside. On the downside 1.5660 is a major level. If this breaks then we will see the pair to go to 1.54 -1.52 area

USDJPY: The star of the recent weeks. Managed to close above 92,50 levels for a second week .A correction is long overdue but not a clear sign yet as uptrend is still very strong. Not very clear picture

AUDUSD: The pair tried this week to break the 1.0368 level but failed. It remains in a range mode and but my system shows clear signals of weakness. As a result I believe that the pair may finally break the level 1.0368 this weak and initiate a nice sell signal.