Weekly Commentary: 20th Apr 2014

Previous weekly commentary: Commentary on 13th Apr 2014

The USD Index is certainly getting more and more uncertain. However, this is not too surprising as you can start to see a consolidation pattern forming which looks like some sort of triangle pattern. Is the market reflecting the lower volume week due to it being the Easter week? Probably. Either way, with such uncertainty, I will look to sit aside until I get more price confirmation of my suspicion.

The following is my watch list for the week:

 20 Apr - EURAUD Daily Forex Chart

(Click on image for larger view)

  • EURAUD – As mentioned on 30th March (see article), after the head and shoulder pattern, price would likely make a pullback before going down further. As price moves further away from the longer term resistance level (~1.56), the next big question is – where will price go next? For me, the next support level down is around 1.41. Will price get there, let’s wait to find out.

20 Apr - EURNZD Daily Forex Chart

(Click on image for larger view)

  • EURNZD – Looking at the chart above, price have been making nice Lower Lows and Lower Highs. As price is testing a short term resistance now, there is a potential that it could move lower now. Of course, I am not ignoring the fact that can go higher before moving lower too. Either way, from here onwards, I will be looking for short set ups.

20 Apr - USDCHF Daily Forex Chart

(Click on image for larger view)

  • USDCHF – If you have been reading my market commentaries for awhile, you should have noticed that I am a big fan of consolidation patterns. That’s because I believe that it usually follows with a breakout of some sort – the chart above is no different. With that, I will wait patiently for one.

 

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

Ps. Happy Easter and have a festive break (to those who are celebrating the occasion).

 

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