Weekly Commentary: 6th July 2014

Previous weekly commentary: Commentary on 29th June 2014

Hello Traders,

The USD index made a change in direction in the middle of the week. I wonder if this is a pullback or a reversal. Half year just ended and we have official started H2. Looking at the weekly picture again, the market seems like it’s in a choppy situation and as the market has been in a range since October last year – ranging between $79.00 and $81.50. As the market continues to range, I can only suggest that we should trade with caution or to look at the individual pairs for setups.

The following is my watch list for the week:

06 Jul - GBPUSD Daily Forex Chart

(Click on image for larger view)

  • GBPUSD – As mentioned on the 15th June (see article), the bulls are still dominating the market and this week, they have shown their dominance. Looking at the chart above, price just broke through a long tern resistance level (~1.7) which happens to be a big round number. The weekly bar closed with a strong trend bar and unless we get a twin track, the bulls should be around longer than I expected.

06 Jul - USDJPY Daily Forex Chart

(Click on image for larger view)

  • USDJPY – As mentioned last week (see article), price is currently in a triangle pattern. Things are looking more interesting this week as price bounced and retested the downward trend line. Is price ready to drop from here? I am interested to find out.

06 Jul - AUDCAD Daily Forex Chart

(Click on image for larger view)

  • AUDCAD – It’s been awhile since I looked at this currency pair as I was struggling to figure out what it was doing. Also, I am guilty for not paying more attention to it until recently. Looking at the chart above now, I did manage to find a nice upward channel which is intact. On top of that, there seems to be a sort support level around 0.98 (around red box). This seems like a decent area for a potential bounce. Will I get what I’m looking for? Let’s wait and see.

 

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

 

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