Weekly Commentary: 11th May 2014

Previous weekly commentary: Commentary on 4th May 2014

Hello Traders,

It was an interesting week. As mentioned in previous weeks, I was looking for price to test the $79 level. While the USD Index did touch the $79 mark, it tested the level and bounced off it. It was a big turn around on Thursday and Friday we got another trend bar to confirm the direction. The market is always full of surprises but this just another repeatable pattern within a random of the market.

The following is my watch list for the week:

11 May - EURUSD Daily Forex Chart

(Click on image for larger view)

  • EURUSD – For those of you who have been following my commentaries, I have mentioned a few times about the wedge pattern (see article) on this currency pair. I almost always love these patterns and, on Thursday, price showed that it made a test of the upper trend line before it turned around. On top of that, there was another false break pattern immediately after an inside bar. This is one of my favourite patterns because it’s simple and easy to spot.

11 May - NZDUSD Daily Forex Chart

(Click on image for larger view)

  • NZDUSD – As mentioned last weekend (see article), I was looking to take a long trade on this pair and I did. However, I’m always cautious when price approaches previous highs. As shown above, price made a nice double top pattern in the end and I was taken out by my break even stop. With such a strong engulfing bar (show above), my view has now changed and I will be looking for short set ups. In fact, a retest of the neckline will be great. Meanwhile, I’m going to sit aside until I get the setup.

11 May - AUDNZD Daily Forex Chart

(Click on image for larger view)

  • AUDNZD – It’s been awhile since I looked at this pair and that’s mainly because price has been trending vigorously (as opposed to a sideway market). While my bias is still short, I have been waiting for a more substantial pullback before I take a trade. As I look at the chart, price shows that it has started to consolidate and it could potentially give me a triangle pattern. While I don’t know the outcome, I will be waiting for a confirmation on either side of that pattern.

 

Thank you for reading and happy trading week! Make sure to post any questions or comments at the box below.

 

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