Weekly Trade Commentary: 18th Nov 2012

Related Article: Commentary on 11th Nov 2012

Hi Readers,

The USD index continues to strengthen last week. It’s pretty annoying since I’m waiting for a pullback before any decent set ups would be valid. Nonetheless, the EURUSD and GBPUSD did start to retrace slightly towards the end of the week though the there’s nothing substantial yet.

Anyway, exciting times ahead, looks like there’s a few possible trades coming in the near future. Anything can happen but let’s see if we can take some good trades.

The following is my watch list for the week:

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  • EURUSD – The weekly chart above shows a downward channel for this pair. So far, the downward bias for this pair is still valid with price obediently respecting the channel (orange arrow). At the moment, price seems to be testing the 1.267 price level which was tested in the past (green arrow). The set up I posted on the 14th Nov (see article) still looks promising but the cake is still baking.

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  • AUDNZD – The daily chart above shows a decent price level around 1.266. Price has been bounced on it several times (green arrow). On the 7th Nov, price broke the level with conviction (orange arrow) and could potential bounce on it again before going long (around the purple box). Again, the idea is not to predict the future but let’s wait to see if we can get a textbook set up.
  • USDSGD – Following my commentary on the 7th Nov (see article), price has finally broken above 1.225 Resistance level. I’m going to watch price at the 4 hr chart for a potential long set up.
  • USDJPY – Similarly, this pair has now broken above the 80.5 level Resistance level – as commented on the 4th Nov (see article). I’ll be looking for a potential long set up.
Food For Thoughts

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  • Gold – To wrap things up, I’m throwing this one out just for thoughts. The probability of such occurrence is probably low but not impossible.

Looking at the weekly chart (black box), my view for this metal is bullish. Unfortunately, when you move to the daily chart, price is actually sitting in the middle of nowhere. So what I’ve done is to plot 2 scenarios that I would like to see – bare in mind that prices don’t usually move in a straight line. As the movement from Gold is usually pretty strong, riding the wave will be heavenly.

Again, the chances are neither will happen, but if they do, I’m a happy man :).


Thank you reading and Happy Trading in the week ahead!!

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