Weekly Commentary: 3rd Feb 2013

Last Week’s Commentary: Commentary on 27th Jan 2013

Hi Readers,

The USD index formed a low test bar on Friday and closed around $79.2.There seems to be a pretty strong support level around £79 and the dollar has not penetrate below. The coming week will be interesting as I look to see if price will break or bounce off this support level. Meanwhile, my bias is still neutral as dollar might continue to range. We’re not here to predict the market, so let’s just watch closely.

The following is my watch list for the week:

03 Feb - USDCAD Daily

(Click on image for larger view)
  • USDCAD – The above is a weekly chart for this pair. Price has been making Higher Lows and recently made a New High. As price started to pullback last week, I’m interested to see if the 0.988 support level (Green arrow) is strong enough to give price a push to go north. Along with that is a 78.6% Fibonacci Retracement as well as a potential bounce off the bottom of an upward channel (Orange arrow). I’m keen to see what happens in the purple box.

03 Feb - EURGBP Daily

(Click on image for larger view)

  • EURGBP – The above is a weekly chart of this pair. As you can see that price is pretty bullish at the moment but price is heading towards a few resistance. We’ll never know what price will do but I’m keen to find a short set up around 0.879 as price faces the top of the channel (Green arrow) as well as a soft resistance level (Orange arrow). This is also accompanied by a 78.6% Fibonacci Retracement level.

I must say, this is somewhat similar to the USDCAD set up above.

  • GBPNZD – As mentioned in my recent article (see article), this pair is testing a major support level around 1.857. Price dropped and stalled there on Friday. It is an exhaustion or a continuation? Who knows?  Let’s see what price has to offer in the next few days.

 

Thank you and Happy Trading in the week ahead!!

 

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