Weekly Commentary: 30th June 2013

Previous weekly commentary: Commentary on 23rd June 2013

Hi Readers,

In line with last week’s commentary, USD Index continues north and closes the week at $83.40. My bullish view remains the same and I expect price to test the next resistance level around $84.

The following is my watch list for the week:

30 Jun - EURUSD Daily

  • EURUSD – In line with the USD, the Euro has continued south this week. In fact, the Friday bar looks like a good short entry – a false break from Thursday’s inside bar – to continue further south. As mentioned last week (see article), the support zone around 1.275-1.280 will be crucial to determine the long term direction of price. With that, I will be watching closely as price approaches the zone.

30 Jun - EURGBP Daily

(Click in image for larger view)

  • EURGBP – It’s been awhile since I looked at this currency pair and that’s simply because not much has happened. However, I’m a true believer that the longer the market consolidates (purple box), the bigger the move will be when it moves. Looking at the bigger picture, my current bias is for the market to short. Price is till within my long term channel and it is at the top of the channel. However, as always, I never discount the fact that the market can go either way. With that, I’m keeping a close watch on this with all my alerts switched on.

30 Jun - EURAUD Daily

(Click in image for larger view)

  • EURAUD – Does this looks familiar? Well, EURAUD is showing a set up that is very similar to EURNZD – which was on my watch list week (see article). Price is currently testing the support around 1.425. As it is, price looks bullish and I’m keen to find a long setup. Meanwhile, I will also compare this with EURNZD and pick the better of the 2 pairs.

30 Jun - EURCAD Daily

(Click in image for larger view)

  • EURCAD – Looking at the chart above, the EURCAD seems to be moving higher and higher – respecting the upward trend line. As price recently broke a resistance level – around 1.36, it looks like price could potentially continue north in the coming week (green path). Alternatively, it price pulls back to the trend line (which is my preference), a potential set up could be a bounce off the trend line (blue path). Looking forward to the start of the week for more direction.

Ps. It was a coincident that all pairs on my watch list are Euro related. Please manage them wisely if the setups happen at the same time.

Thank you for reading and happy trading week!


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