Weekly Commentary: 4th May 2014

Previous weekly commentary: Commentary on 27th Apr 2014

Hello Traders,

The USD Index started moving south at the start of the week and it made a big drop on Wednesday. Friday made some interesting development (thanks to non-farm data) as the day closed with a major high test pin bar. With that, price started to move towards the $79 level and it is getting more interesting now. Let’s see what we can get in the coming week.

The following is my watch list for the week:

04 May - AUDUSD Daily Forex Chart

(Click on image for larger view)

  • AUDUSD – As mentioned on 9th April (see article), price was about to test a strong resistance (~ 0.94) and it did as planned. Since then, I have been looking for a double bottom pullback before price it gets back into the long continuation trend. On Friday, price also tested the upward price channel and closing the day with a low test pin bar. Is this the signal that I’m looking for? Whether it is or it isn’t, I look forward for confirmation in the coming week.

04 May - EURJPY Daily Forex Chart

(Click on image for larger view)

  • EURJPY – Another beautiful triangle consolidation. The currency pair is now consolidating and I am potentially looking for another breakout pattern. As always, I need some confirmation before taking the trade.

04 May - EURAUD Daily Forex Chart

(Click on image for larger view)

  • EURAUD – As mentioned on 20th April (see article), price showed me a nice head & shoulder pattern. Price also broke below the neckline and it is now back to retest that neckline. With that, I am looking for some short setups from here.
  • USD Relate pairs – Most USD related pairs are now showing strength and are in line with USD Index. I am particularly interested in EURUSD, AUDUSD, NZDUSD and USDJPY.

 

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

 

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