Weekly Commentary: 7th July 2013

Previous weekly commentary: Commentary on 30th June 2013

Hi Readers,

As mentioned last week, I was expecting the USD index to hit the next level of resistance, and it did. On Friday, price closed at $84.70. With that, my longer term bias for the USD is bullish. I would expect price to correct itself at one stage before it goes further north.

The following is my watch list for the week:

07 Jul - EURUSD Daily

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  • EURUSD – As mentioned last week and in line with the USD, the Euro has continued south this week. In fact, the week closed right above the support zone (purple box around 1.275-1.280) that was identified several weeks back. Will price go lower in the coming week? I am not surprise if it does. However, I will be watching the support zone pretty closely in the coming week.

07 Jul - GBPUSD Daily

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  • GBPUSD – Similar to EURUSD, price is also testing a support level (~ 1.486). With such bearish price action, I expect price to go further south. Ideally, a break below and short entry for a short continuation will be great. Until then, I’ll keep a close eye.

07 Jul - NZDUSD Daily

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  • NZDUSD – As mentioned on the 27th June (see article), I was expecting a correction wave to have happened on this pair. However, price developed into a range market (purple box) instead. With that, I will not be surprise if Wave 5 continues further. Nonetheless, I will be careful not to conclude just yet. The best indication now is a break out from the range for a short continuation or long correction. Until it happens, I will sit aside and watch closely.

 07 Jul - USDJPY Daily

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  • USDJPY – Looking at price action at the moment, the Low Test bar (red arrow) showed a good long continuation set up off a decent price level (~99.78). Unfortunately, I have been away for a few days and missed a good entry.  Now, I look forward for price to test the next resistance level (~103.3) for a potential break or bounce.

Thank you for reading and happy trading week!

 

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