Weekly Commentary: 30th Mar 2014

Previous weekly commentary: Commentary on 23rd Mar 2014

The USD Index closed the week at $80.30 again and this time forming a weekly low test. While the low test don’t mean much on its own, it does give a slightly bullish bias indicating that the bulls are still in control after the engulfing bar from previous week. With that, I look forward for a long continuous market at least for the short term basis. For a longer term bullish trend, I need a clear break above $81.50 and, for a bearish trend, I need a clear break below $79.00.

The following is my watch list for the week:

30 Mar - AUDUSD Daily Forex Chart

(Click on image for larger view)

  • AUDUSD – As mentioned since early Feb and on the 9th March (see article), I was looking for a bullish set up for this currency pair. With a confluence of technical factors, price made a nice bullish move last week. With that, I will only take long trades from here onwards, potentially when price makes the next correction.

30 Mar - EURGBP Daily Forex Chart

(Click on image for larger view)

  • EURGBP – Price broke out of the wedge with a bullish bias (see article) and since then, I have been waiting for a long entry. Recently price made a strong pullback and its back to retest the trend line, there is also a soft support level. Is price ready to go long again? I look forward to find out.

30 Mar - EURAUD Daily Forex Chart

(Click on image for larger view)

  • EURAUD – As mentioned on the 2nd Mar (see article), I spotted a nice tilted head & shoulder pattern. Looking at the chart above, price went according to plan. While I took a short take, I have already close in profit. From here on and in line with the AUDUSD, I shall wait for a correction before taking any short set ups.

 

Ps. A friendly reminder that it’s the close of Q1 for 2014. Also, with a few news announcements coming up, do trade with caution.

 

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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