Weekly Commentary: 27th Jan 2013

Previous commentary: Commentary on 20th Jan 2013

Hi Readers,

The USD index is still in a range (as mentioned last week). I need a drop below 79.4 for a near-term short bias and below 79.0 for a longer term bias. A part from that, the dollar is not very clear for now.

The following is my watch list for the week:

27 Jan - GBPUSD Daily

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  • GBPUSD – Since this pair broke out south, it’s only been heading south. Price is bearish but it has not really cycled. At the moment, it’s sitting on a strong support level around 1.58 (Green arrow) which has been rested a few times in the past.

Let’s get some clearer directions at the start of the week.

27 Jan - AUDUSD Daily

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  • AUDUSD – In line with my commentary on the 13th Jan, this pair is still testing the triangle. At the moment, AUDUSD is sitting on the upward trend line. Similar to GBPUSD, I’ll wait for the start of the week for clearer direction.

27 Jan - EURAUD Daily

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  • EURAUD – Price just broke above a triangle and it looks pretty bullish at the moment. However, there is a major resistance level around 1.30 which will be interesting.

Ideally, I would like to see a pullback from that resistance before taking a long entry around 1.28 (purple path). However, if price breaks the 1.3 with conviction, then I’ll be looking for an alternative pullback, potentially taking it long at 1.3 again (Orange path).

  • EURUSD – See my comments from yesterday (click here to read). I’ll be watching this very closely.

 

Thank you and Happy Trading in the week ahead!!

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