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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GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
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