Weekly Commentary: 24th August 2014

Previous weekly commentary: Commentary on 17th August 2014

Hello Traders,

The USD index closed around $82.40 this week, quite a surprising move for me but then again, this is a good indication of who is currently taking the lead in the market. The double high test bar proofed to me again that those who were not patient enough would have been caught. Looking at price action now, it seems to be that it is clear that the buyers are taking the lead. Nonetheless, I would also like to see a retracement before the market continues higher. With that, I shall wait for a pullback before taking this long.

The following is my watch list for the week:

24 Aug - EURUSD Daily Forex Chart

(Click on image for larger view)

  • EURUSD – So, the Euro has officially made another Lower Low and the low test pin bar (as mentioned on that was highlighted earlier did not to be useful (in line with the USD Index). In fact, many traders would have bought the market and have placed their stops below those pin bars, and the result of that is shown in the trend bar that closed this week. With that, I would be looking more short setups. Hopefully after a pullback.

24 Aug - USDJPY Daily Forex Chart

(Click on image for larger view)

  • USDJPY – As mentioned on the 10th Aug (see article), I was looking for price to move higher after a nice pin bar that was retesting an old resistance trend line. That trend line happened to be from a nice descending triangle pattern formed since Oct 2013. Looking at price action now, price has moved higher and it is now testing a near term resistance. Will price move higher? Let’s wait and see.

24 Aug - AUDUSD Daily Forex Chart

(Click on image for larger view)

  • AUDUSD – As mentioned on the 3rd Aug (see article), I was expecting price to either move lower and out of the range (below 0.92) or to bounce off the bottom of the range and continue sideways. Price chose the latter. In fact, if I were to look closely, price might have just formed a double bottom at around 0.923. Will price move lower to give me a Head & Shoulder? Or is price ready to move higher again?

 

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

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