Weekly Commentary: 11th Aug 2013

Previous weekly commentary: Commentary on 4th August 2013

Hi Readers,

The USD index continued to moved south from the start of the week with a one sided bias closing the week slightly above $81. The real question is, are the bears back here for the longer term? Well, the test of the next support level (~$80.70) should give me a better view of that. As price is now slightly over extended, my bias is for price to bounce and start moving north again.

The following is my watch list for the week:

11 Aug - EURUSD Daily

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  • EURUSD – The Euro looks like it’s testing a resistance level now (~1.34). Like the USD, price looks a little over extended and I expect to see either a reversal or a short pull back before moving higher. Either way, Price Action at the start of the week should show some clearer direction.

 11 Aug - EURGBP Daily

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  • EURGBP – After a series of events, this pair is now back to test the same price level (~0.86). Looking at price action now, a double inside bar shows extra indecision. The more price consolidates, the more likely it would break out with a strong momentum. The next question is – in which direction? My current bias is a short but I look forward to the start of the week for more confirmation.

 11 Aug - GBPJPY Daily

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  • GBPJPY – As mentioned on last week’s commentary, I was expecting Price to continue lower this week, and it did. However, the support level around 147.6 has held on pretty well. At the same time, as price forms lower highs, I can potentially see a descending triangle forming. I’ll continue to watch this pair and see if I can find any potential break out trades in the longer term.

 

Thank you for reading and happy trading week!

 

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