Weekly Commentary: 26th Jan 2014

Previous weekly commentary: Commentary on 19th Jan 2014

Hello Traders,

The USD index is a bit of a mess at the moment. I did not get the $81.50 break that I wanted and, since that not happen, I can only conclude that we’re going through some choppy weather. I’ll be watching with care.

The following is my watch list for the week:

26 Jan - GBPUSD Daily Forex Charts

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  • GBPUSD – Looking at my commentary on the 23th Oct (see article), price has broken the long term channel and it is currently testing the resistance zone (between 1.63-1.67). While I don’t know if price will bounce or break at 1.67, price action on Friday gave me a clear short engulfing candlestick which is a short signal. However, with price trending upwards for the last few weeks, I’m not surprise if the bulls continue to push it higher. With that, I’m going to watch price to see if this is a retracement or a reversal. Since this is a zone rather than a clear price level, the break below (or bounce on) the short term support will be crucial.

26 Jan - USDJPY Daily Forex Charts

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  • USDJPY – Another interesting price pattern is the Yen. Since the breakout from the triangle, price made a bullish run. While price did make a new high, it did not go far. As I write this commentary now, price made its first lower low since Nov. Is this a reversal?

26 Jan - AUDUSD Daily Forex Charts

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  • AUDUSD – Price broke below the major support level and gave me a nice retest of the new resistance level. This was not surprising and it was mentioned on my previous commentary (see article). With that, I’ll be taking more short set ups from here. The next major support level is at 0.805.

26 Jan - NZDJPY Daily

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  • NZDJPY – As mentioned last week (see article), I was waiting for the breakout.. and I got one. It’s going to be shorts from here onwards.

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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