Weekly Commentary: 15th Dec 2013

Previous weekly commentary: Commentary on 8th Dec 2013

Hello Traders,

The weekly bar on the USD index formed a low test pin bar with the weekly closing near the open. Does this mean that it’s going to start moving long again? Or is this just a short term correction? A bit of uncertainty at the moment – hence, I’m going to be slightly more cautions.

The following is my watch list for the week:

15 Dec - AUDUSD Daily

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  • AUDUSD – Since my last commentary on 25th Sept (see article), price has been falling after bouncing off the resistance zone. Now, looking at the charts again, price seems to be testing the near term support. If price bounces off the support, then I would expect to see price to range. Nonetheless, my expectation is that price will fall and I hope to find another short setup when support turns resistance.

15 Dec - AUDCAD Daily

 

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  • AUDCAD – As mentioned on the 6th Oct (see article), I found a resistance level around 0.996. Price eventually broke above but dropped back below quickly, making a false break. Since then, price has been falling and I am looking for price to hit the next support level (~0.924). With that, I shall sit back and watch.

15 Dec - USDJPY Daily

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  • USDJPY – As mentioned last week (see article), I was expecting price to break above the 103.6 price level which is also a near term resistance. At the close of Friday, the daily bar formed a high test pin bar. While the overall picture seems bullish, the short term price action seems to suggest a potential minor pullback before breaking above. Of course, until price breaks above that level, I’ll stay aside in case it forms a reversal instead. With that, I look forward to the start of the week for more directions.

Thank you for reading and happy trading week! Post any questions or comments that you may have at the box below.

 

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