Weekly Commentary: 8th Dec 2013

Previous weekly commentary: Commentary on 1st Dec 2013

Hello Traders,

As expected from last week’s update, the USD index closed lower this week at around $80.30. With such price action, this should give me comfort that the next target will be around $79. Price action has now set some direction for me and with December being the final month and final quarter of the year; I’m looking forward to another interesting month ahead.

The following is my watch list for the week:

08 Dec - NZDUSD Weekly

(Click on image for larger view)

  • NZDUSD – Taking a step back and looking at the weekly chart, the weekly channel that I’ve established a few months ago still holds strongly. As price shows bullish strength this week, my first target is at ~0.853 price level. If price breaks above that, price looks likely to reach the top of my channel.

08 Dec - USDCAD Weekly

(Click on image for larger view)

  • USDCAD – Another price action that I really like. The weekly chart above shows a test of a strong weekly resistance zone between 1.066-1.073. While I don’t know if price will break that zone in the longer term, it looks pretty likely that price will bounce off it in the shorter term. My goal is not to predict the future and, hence, I see that as a good potential for a short set up.

08 Dec - USDJPY Daily

(Click on image for larger view)

  • USDJPY – As mentioned on the 24th Nov (see article), I was expecting price to test the previous high around 103.6 and price is heading that direction. Moving down to the daily timeframe, price looks like it’s about to test it and bullish engulfing bar on Friday seems to suggestion that it’s about to break it. With that, I look forward to see what price will do.
  • EURUSD & GBPUSD – my views on these pairs remain in line with my commentary last week (see article).

 

Thank you for reading and happy trading week! Post any questions or comments that you may have at the box below.

 

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