Weekly Commentary: 7th Apr 2013

Previous weekly commentary: Commentary on 31st Mar 2013

Hi Readers,

This week, although the USD index closed slightly lower, it did not move much compared to previous week. The decently high test bar on Thursday gives me indication that it is due for a bigger pull back than the one we had on 24th Mar. I look forward to the start of the week for some clearer indications of direction.

The following is my watch list for the week:

 07 Apr - AUDUSD Daily

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  • AUDUSD – As mentioned in my previous article (see article), my bias for this currency pair is long. However, looking at the bigger picture, there is also a long term triangle that is forming (see chart). At the moment, I am keen to see how price will react to the near term support level (around 1.34). Ideally, I would like to see price break out of the triangle.

07 Apr - EURNZD Daily

(Click on image for larger view)

  • EURNZD – As shown above, price has been making Weekly Lower Highs and Lower Lows. Plus, price has been cycling nicely in a weekly price channel (not shown). Last week, price broke below a fairly strong support level around 1.546 and it is now re-testing that level. This looks like a nice short continuation trade.

07 Apr - Silver Daily

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  • Silver – As mentioned in my video (see video), I was expecting price to reach the 26.6 support level. To my surprise, price miraculously touched 26.6 before going long on Friday. As shown in chart above, I will be looking forward to see how price will react at the resistance zone (purple box) above.

 

  • Gold – As mentioned recently (see article), I was looking for price to bounce or break 1530 support level. Unfortunately, price did not reach that level but it moved aggressively north on Friday. Although my bias now is towards a bullish market, I will need price confirmation (see article on price action) before taking any long trades.

 

Thank you for reading and happy trading!!

 

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