Weekly Commentary: 23rd Mar 2014

Previous weekly commentary: Commentary on 16th Mar 2014

After a few weeks of waiting, the USD Index decided to move north instead. The week closed at $80.30 forming a nice weekly engulfing bar. Is this the start of a bullish run? No idea. While my short term bias is bullish, my next resistance level is around $81.50 and I need a move above that for a confirmation of a bullish market.

The following is my watch list for the week:

23 Mar - EURUSD Daily Forex Chart

(Click on image for larger view)

  • EURUSD – Following on from last week’s commentary (see article), the EURUSD did give a very unconvincing break (above long term trend line) and sure enough price moved to the downside since the start of the week. In fact, looking at the Wednesday bar, it made a huge engulfing pattern with the bar overlapping 8 bars prior to it. I think that is a good enough evident that the bears are back. With that, I’ll be looking for short set ups.

23 Mar - GBPUSD Daily Forex Chart

(Click on image for larger view)

  • GBPUSD – As mentioned last week (see article), I was looking for price to break out of the box and it did so on Wednesday. With that, I’m taking short trades from here.

23 Mar - NZDUSD 4H Forex Chart

(Click on image for larger view)

  • NZDUSD – The Kiwi is showing multi-layer resistance level at the moment and, to be honest, resistance zones like these are somewhat complex to trade. However, when I looked at the 4 hour chart (above), there was a nice double top (~0.862) that coincided with the resistance level formed around early Dec 2013. That slightly tilted my preference and I like a short potential from here onwards.

 

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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