Weekly Commentary: 17th Feb 2013

Previous commentary: Commentary on 10th Feb 2013

Hi Readers,

The USD index is still crawling higher and it closed the week at $80.5. As mentioned last week, I’ll need price to move above the short term $81 resistance level before I get a strong confirmation that the bears have lost the battle. Meanwhile, I’ll see how price would test the $81 mark.

The following is my watch list for the week:

17 Feb - EURUSD Daily

(Click on image for larger view)

  • EURUSD – As mentioned last week, price fell sharply below 1.35 price level. However, that does not mean that this pair is reversing south. In fact, my bias is still long on this. In the near term, I’m going to watch this pair closely as it test the upward trend line (Green arrow). There is also a soft support level (Orange arrow) around 1.328. Let’s see what price action has to offer at the start of the week.

17 Feb - NZDUSD Daily

(Click on image for larger view)

  • NZDUSD – As mentioned on the 6th Feb (see article), I was looking for a bullish set up for this pair. Well, the set up did not happen and I stayed away since. On Thursday, price finally broke above the long term resistance level but it close back below the level the very next day – indicating a strong potential false breakout. My bias is now short on this and I look forward to the start of the week for a short set up.

17 Feb - EURNZD Daily

(Click on image for larger view)

  • EURNZD – The chart above shows that this pair is cycling very healthily and I like it when price is healthy. On Friday, price touched the 1.563 soft support level (Green arrow) and it bounced north with a small bull bar. There is also an upward trend line / channel (Orange arrows) that could potentially push this higher.

17 Feb - GBPCAD Daily

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  • GBPCAD – Price is testing a long-term support level around 1.55. I think the chart says it all. If you’re not familiar with the concept of support and resistance in a ranging market, then do see my article for illustration (click here to read article)

 

Please note that Monday is US Holiday.

Thank you and Happy Trading!!

 

 

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