Weekly Forex Chart Analysis, April 14th – 18th 2014
EURUSD – Euro/dollar strong, watching for buy signals from value
The EURUSD had a strong run higher last week, closing the week with a small loss on Friday as the bullish surge began to fizzle a bit. This week, we remain bullish biased whilst the market is trading above 1.3700 key support and will look for price action buy signals if the market retraces back to support at horizontal levels or the 8 / 21 day EMA support layer.
GBPUSD - Sterling/dollar rotates down from key resistance
The GBPUSD ended Friday modestly lower after hitting key resistance up near 1.6820 on Thursday. We could see the market rotate back down to value / support before moving higher again. So, we will watch for a buy signal from the 8 / 21 day EMA layer or from horizontal support levels if the market does retrace lower this week.
AUDUSD – Aussie/dollar bullish trend intact, watch for new buying opportunities
The AUDUSD made a nice push higher following the inside bar signal we discussed in our April 8th commentary. On Friday, the market pulled back a little bit after a bearish tailed bar formed on Thursday from a longer-term resistance level up near 0.9430 – 0.9460. We can see that the nearest value / support area is coming in down near the 21 day EMA and between about 0.9300 – 0.9200 area. If the market rotates down to that support area this week, we can watch for buying opportunities to rejoin the uptrend from value.
USDJPY – Dollar/yen near bottom of trading range
The USDJPY consolidated on Friday just above key support between 100.75 – 101.30. This week, if the market can remain buoyant above this key support area between 101.30 – 100.75, we could see it push back up into the trading range, toward resistance. However, if price weakens further and closes under 100.75 it would obviously be a very bearish sign that could potentially set off an even larger move lower. We need to watch this key support area closely this week for bullish price action signaling a resumption of the trading range, or for continued weakness which could signal a break out to the downside.
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