Weekly Commentary: 22nd Sept 2013

Previous weekly commentary: Commentary on 15th September 2013

Hello Traders,

The USD index made a massive drop this week. It gapped opened at the start of the week and it just continued to fall for the rest of the week. The index closed around $80.5 and it also made a fresh low since the low of mid-June. This is a confirmation that USD is weak and I expect more selling to happen in the mid future.

The following is my watch list for the week:

22 Sep - EURUSD Daily

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  • EURUSD – Price moved out of the channel, this is epic as my short bias has been invalidated. All I can say is that I’ll be looking for long set ups from now. Keeping a close eye – as always :).

22 Sep - USDCAD Daily

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  • USDCAD – Price finally broke out of the longer term upward channel and the channel failed to hold the bullish trend. As mentioned last week (see article), this was not at all surprising. In fact, I quite like the new direction as I can almost immediately see a new channel popping up and we already have 4 points confirming the channel. Since this is a direction, the chances of the channel working are much higher since we are still at the early stage of it.

22 Sep - USDSGD Daily

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  • USDSGD – Let’s visit an old friend which I’ve not discussed for a long time (last commentary made was in May 2013). The weekly price channel has been adjusted and the price action looks good to go further south in a downward channel. Also, there was the double top pattern which was formed from highs in early of July and end of Aug. This week, price broke below the neckline (~1.26) and that was the confirmation that I needed as price finally made a new lower low (LL). As price is currently over extended, I would like to see a retest of the neckline before going further south. Will I get the entry that I want? Well, there’s only one way to find out.

22 Sep - EURJPY Daily

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  • EURJPY – As mentioned on the 29th Aug (see article), I was looking for price to break out of the triangle. Price broke out and came down again before moving higher again. While this is not the typical break out pattern that I was looking for, it’s not at all surprising. Plus, the worst case scenario was to give it a miss – which was what I did. Anyway, as price just moved higher, I am ready for long entries again.

Note:

Hope you’re enjoying my articles. If you are, Fantastic!! Meanwhile, with the success of my first book on “How To Read Price Action? War Stories of Buyers Vs Sellers”, I am now in the middle of my next book on more price actions. If you are interested, stay tune to get more updates.

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

 

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