Weekly Commentary: 6th Apr 2014

Previous weekly commentary: Commentary on 30th Mar 2014

The USD Index closed higher this week, not too surprised based on what I’ve mentioned last week. As price continues to move higher, I will be watching closely as soon as price starts to approach the $81.50 mark. Until then, I will continue to be bullish on the USD.

The following is my watch list for the week:

06 Apr - EURUSD Weekly Forex Chart

(Click on image for larger view)

  • EURUSD – If you don’t already know, then you should learn now that being a trader is about being patient. If you want to know why, then take a look at the chart above. I’ve been keeping an eye on the EURUSD since the end of last year (see article) and nothing substantial has happened yet. However, this pair is just like a spring being compressed because, as price continues to consolidate and becomes narrower, the likelihood of it bursting out continues to increase. With that, I continue to wait.

06 Apr - USDCAD Weekly Forex Chart

(Click on image for larger view)

  • USDCAD – The chart above is showing me a nice test above a channel. In case you don’t already know, I’m a trend trader. Hence, I need a price action confirmation of a short set up. Unless, I get that, price could potentially continue higher, as it has been doing so since Sept 2013.

06 Apr - EURCAD Daily Forex Chart

(Click on image for larger view)

  • EURCAD – While my bias for both the EURUSD and USDCAD is short, I’m actually bullish with this pair. As shown above, the upward channel is intact and price just started moving downwards. I am keen to look for some long set ups at the bottom of the channel. Meanwhile, I like to keep my options open and I believe the market has its own mind, hence, there’s always a possibility of a short continuation. The only way to find out is through keep a close watch of price action as it approaches that level.

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

 

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