Weekly Commentary: 15th Sept 2013

Previous weekly commentary: Commentary on 8th September 2013

Hello Traders,

As mentioned last week, I couldn’t figure out where the USD index was heading. This week, the USD weakened and there isn’t much sign of strength just yet. Looking at the double inside bars on Thursday and Friday, I would expect a clearer direction in the next few days.

The following is my watch list for the week:

15 Sep - GBPUSD Daily

(Click on image for larger view)

  • GBPUSD – Cable has been strengthening more than I expected. Looking at the charts, price broke the old resistance level (~1.57) to make a new high. Although this level has been broken in the past, it has also been bounced on in the past (blue circles). With that, my bias for cable is to go long in the shorter term with the top of price channel as my next target. Meanwhile, my longer term view of cable is still bearish as I expect the channel to be respected again.

15 Sep - USDCHF Daily

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  • USDCHF – As mentioned last week (see article), the false break did work out in the end, while I didn’t take the trade (due to the uncertainty in the USD), shorting this looks more and more attractive. Reading the charts now, I would expect price to at least reach the 0.917 support level. If it goes even lower, then my target would be the bottom of my price channel.

15 Sep - USDCAD Daily

(Click on image for larger view)

  • USDCAD – This currency pair has been trending in a long term price channel (as shown above). As I write this article, price is testing the bottom of the channel. Alongside the channel is also a minor support level (~1.03), the green circle shows where it was established. While I like this pair to go long, I would not ignore the potential that price can break out of the channel. With that, I will stay close for more price confirmation.

15 Sep - EURCAD Daily

(Click on image for larger view)

  • EURCAD – Another good and decent looking price channel. Looking at price, it has been moving lower recently and currently testing a minor support level (~1.366). While price looks a little bullish on Friday, I’m not surprise if it goes lower to test the bottom of the price channel.

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


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