Weekly Forex Chart Analysis – March 10th – 14th 2014
EURUSD – Euro/dollar hits key resistance after surge higher
The EURUSD continued pushing higher Friday, testing the key resistance up near 1.3893 before backing off the highs and forming a bearish pin bar into the week’s close. It’s important to note that this is a counter-trend pin bar and we’ve just seen a very strong push higher, so any pullbacks from here could be limited to the 8 day EMA or the 8 / 21 day EMA layer. Thus, this week, we will be watching for price action buy signals from the 8 / 21 day EMAs if the market rotates down from Friday’s pin bar, in order to look to rejoin the uptrend from value / support.
GBPUSD – Sterling/dollar continues grinding higher
The GBPUSD rotated modestly lower on Friday, ending the day just above the 8 day EMA and showing rejection of higher prices. The trend is still up on the daily chart, so this week we will still be watching for price action buy signals from support as long as the market is trading above key 1.6580 support.
AUDUSD – Watching for Aussie/dollar buy signal from value
The AUDUSD continued higher early in Friday’s trading session but reversed gains intra-day and ended the day with a slight loss. This week, we will watch for price action buy signals from value / support if the downside retrace continues. We will be looking to trade in-line with the recent bullish momentum as long as the market continues to trade above key support down near 0.8900.
USDJPY - Dollar/yen breaks higher
Last Thursday, the USDJPY busted up through the resistance at 102.80 that had been containing it over about the last month. We can see the 8 / 21 day EMAs have just crossed higher, reflecting this recent surge higher. This week, we can watch for price action buy signals on a rotation back to value / support near the 8 / 21 day EMAs in order to trade in-line with this recent bullish momentum
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EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.