Weekly Commentary: 20th Jan 2013

Previous commentary: Commentary on 13th Jan 2013

Hi Readers,

The USD index made a turn around and started heading north at the start of the week. I have a very slight long bias because of the new higher low (bar on 14/1) and higher high (bar on 4/1). Irrespective of that bias, the index has definitely moved into consolidation territory. I’ll need a new higher high or a new lower low for a confirmation in the change of market direction.

The following is my watch list for the week:

 20 Jan - EURUSD 4H

(Click on image for larger view)

  • EURUSD – The chart above is a 4 Hr chart of this currency pair. Since my commentary last week, price has only moved side ways. My view of a potential short around 1.35 remains the same (as mentioned last week). However, on the 4 hour chart, price did make a double top around 1.34 – see chart above. Hence, I might just sit out until I get more confirmation.

20 Jan - GBPUSD Daily

(Click on image for larger view)

  • GBPUSD – The chart above is a weekly chart of this pair. This pair finally broke out of the triangle and it’s looking pretty bearish at the moment. I will be looking for a pull back before I take a short entry. The immediate support level is at around 1.58 (Green arrow).

Looking forward to see what the cable has to offer.

 20 Jan - NZDUSD Daily

(Click on image for larger view)

  • NZDUSD – The chart above is a daily chart of this pair. For several week, the Kiwi has been cycling very nicely with higher highs and higher lows. This gave me confidence that price was bullish. However, price made a double top (Green arrow on far right) at the start of last week and I’m now very keen to build a short bias for this pair. As always, I’ll need price action for a confirmation of a short entry.

 

Thank you and Happy Trading in the week ahead!!

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