Weekly Trade Commentary: 21st Oct 2012

The US Dollar Index made a higher low at 79.0, which is essentially a higher low compared to the low on 14th Sept. At the same time, price made a double top at 80.2 (as mentioned in last week’s commentary). Until price makes a higher high, the Index has no clear direction.

My watch list for the week:

  • EURGBP – from my previous commentary (from 23rd Sept), this pair provided some nice profit from a long with-trend setup which triggered on the 27th Sept. As shown in the weekly chart, price broke above a strong trendline resistance (see Green arrow in chart below) which acted as resistance since May 2011. Price also re-tested the Trendline before moving further North. This week, I will be looking for a new setup if price breaks above the next weekly Resistance level at 0.814 (see Orange arrows in chart below). The following is a EURGBP Weekly chart.
(Click image for Larger View)
  • AUDNZD – from my previous commentary (from 7th Oct), price bounce off a weekly support level at 1.236 (see Orange arrows in chart below). Now price is about to test a new Resistance level at 1.267. Based on the long bullish (weekly) bar, my bias is long on this pair. I’ll be interested if it breaks above this resistance level and I’ll look for a long setup. The following is a AUDNZD Weekly chart.

(Click image for Larger View)

 

  •  EURJPY – I’m watching this pair as there is a confluence of resistance. (1) Price is approaching a weekly trendline drawn from Apr 2011 and Mar 2012 (see chart below). (2) There is also a potential weekly Resistance Zone (purple box) – price level of the zone is between 105.5 and 106.6. I’ll be looking for a potential continuation or reversal setup. The following is a EURJPY weekly chart.

(Click image for Larger View)

As always, Price Action should be clear before taking any trades.

Thank you and happy trading!!

Leave A Response

* Denotes Required Field