EURUSD Jan 31th to Feb 4th Outlook
Recap of Last Week
Tight range due to absolute expansion from prior week tagging range of first week of the month/year. Closed the week below midpoint and also prior week high/close.
Next Week Outlook
As long as this week’s upper 50% acts as resistance (green zone to previous week high), it is very likely the high of the first week of the month (yellow zone) will be tested again. Breaking that implies the midpoint of first week range will be tagged (red zone).
Notice that next week is Chinese New Year thus many countries have their stock markets closed throughout the 2nd half of the week. Some countries even extend the holidays to the beginning of the week after. So lower volume is expected.