Weekly Forex Chart Analysis – March 24th - 28th 2014

Weekly Forex Chart Analysis – March 24th - 28th 2014

EURUSD – Euro/dollar near-term momentum turns bearish

The EURUSD consolidated on Friday and formed an inside bar in what was a pretty quiet trading day following significant losses on Wednesday and Thursday. The near-term price action in this market is clearly favoring the bears, and we could see more losses in the coming days if the bears remain in control. If we get an obvious price action sell signal from resistance this week, we would consider a short entry to rejoin the recent bearish momentum and trade down toward support.

GBPUSD – Sterling/dollar bearish momentum continues

In our March 19th commentary, we talked about the dynamics in the GBPUSD changing from bullish to bearish recently and the potential for more losses in the coming days. We can see the market continued falling lower on Friday and that next key support level is not coming in until down near 1.6300 – 1.6250 area. If this market retraces up toward that key 1.6580 level and the 8 /21 day EMA layer this week, we will be watching for price action sell signals on the 1 hour, 4 hour or daily chart time frame to rejoin this fresh downtrend from resistance.

AUDUSD – Aussie/dollar remains in trading range but grinding higher

The AUDUSD was unable to sustain itself above the key resistance near 0.9135 last week, rotating significantly lower from that resistance on Wednesday. However, the market did gain back modest ground on Friday, but is still trading in the middle of its recent trading range between 0.9135 – 0.8890. We still like the long side in this market but prefer to wait for a buy signal from further down near key support at 0.8925 – 0.8890 area or following a break and close above that key resistance at 0.9135.

NZDUSD - Kiwi/dollar retracing toward support levels

The NZDUSD lost ground late last week following what was a strong run higher. The trend is still bullish but we wouldn't be surprised to see a deeper rotation lower before the market begins trending higher again. If we get an obvious 4 hour or daily chart price action buy signal at near 0.8430 support it could be a good buying opportunity.