This weeks post covers my view on Cable, EUR, Aussie & Kiwi.
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Last week I mentioned the Pound would move back down from resistance into the support of 1.322 and TL. This week price did get down to this level, but shot up beforehand. Monday started the week with another bearish pin bar (albeit bullish close) off the same 1.336 level the previous Friday’s action had bounced off. But on Tuesday price managed to break out to the upside with a strong bullish close above, however it sunk straight back down below 1.336 and continued down for the rest of the week.
Friday’s price action printed a larger bodied indecision candle, right off the 1.322 level. Price may make a deeper run into this level and TL before continuing up.
> Resistance Areas: 1.35, 1.37 & 1.40
> Support Areas: 1.28 & 1.32
After the previous weeks close and rejection off 1.123 short term resistance, price on Monday didn’t see any follow through and barely moved at all. On Tuesday we saw a strong move to the upside, breaking through the 1.123 level, Wednesday saw some consolidation before another attempt to push higher was seen. This came on Thursday but was rejected around 1.132 and a longer term downwards TL and although it closed bullish, price printed a large wicked pin bar. Friday’s action mimics the GBP with printing a larger bodied indecision candle, with this bar being right on the 1.123 level.
I’m thinking price will fall from this area in line with the longer term trend, however will need some confirmations, i.e. a break and close below 1.116/1.113 for confirmed bearish movement, or a test and break of 1.136 of recent highs will start to bring in thoughts of bullish movement.
> Resistance Areas: 1.146
> Support Areas: 1.08 & 1.106
This week saw the Aussie move significantly on a couple of days. Having shown a lot of rejection wicks the past few weeks, price seemed to be moving slowly down, however on Tuesday price shot back up with a strong momentum candle back up and into the resistance area. Thursday printed a bearish pin bar with its wick being rejected from the 0.773 area which are the recent highs, Friday followed through with this bearish movement and dropped right down to 0.753.
Looking at the weekly chart, this weeks candlestick printed a large bearish pin bar. Similar to the candles from two, three and fours weeks ago. This pairs still seems like it wants to head south,
> Resistance Areas: 0.784 & 0.79
> Support Areas: 0.74, 0.725 & 0.76
Similar to the Aussie the Kiwi saw a volatile week with a strong move up at the start of the week, just to see price drop right off at the end. The past few weeks we have seen price print a lot of rejection wicks off 0.73 zone, but on Tuesday along with most of the major USD pairs price shot up and close way above the 0.73 level. After making a slight continuation of the move on Weds price seemed to find sellers and dropped right back down, just short of 0.73.
The weekly is showing a large pin bar, although with a bullish close, so whether this was a false breakout above 0.73 remains to be seen, any rejection off 0.73 now a support level will likely push price back up, but a close below would indicate it may have just been a squeeze of all those stops from the shorts.
> Resistance Areas: 0.742 & 0.72
> Support Areas: 0.674 & 0.689
Market commentary and trade ideas are solely my opinion and are not to be considered as trading advice. Presented in a blog format, it is intended for informative and entertainment purposes only. Please do not follow or act upon these opinions, you should undertake your own analysis and be aware of the risks involved.