Forex Trade Setups Commentary: Weekend Forex Update, 23rd October 2010

Forex Trade Setups Commentary: Weekend Forex Update

Friday’s price action proved to be relatively quiet in the FX market, there are however some very interesting support and resistance levels that we would like to make note of for this upcoming trading week.

The charts below show the important horizontal levels that may influence price action on the EURUSD, GBPUSD, AUDUSD, and GBPJPY this upcoming trading week.

EURUSD: In mid-term up trend, but currently looks congested, resistance at 1.4000 area seems to be holding, if it does rotate lower early this week, it will likely fall into support at 1.3700.
GBPUSD: This chart has been weak as of late, currently at 1.5650 support, we could see a rotation up into the resistance at 1.5920-50 area to allow a selling opportunity. If this 1.5650 fails we could continue lower into early this week.
AUDUSD: Pair in long term up trend, but currently showing multiple inside bars, looks congested, resistance comes in near 1.0000, support sits near 0.9660. Bias neutral to postive.
GBPJPY: If 127.50 holds early this week, we may see a push higher, but there is strong resistance at 129.10 which should contain price and may provide a selling point to join the down trend.

Check out this video on drawing support and resistance levels for more information.

For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.

Commentary:

Yesterday’s movement in the forex market was relatively quiet, the U.S. dollar was mixed against the other majors, closing modestly higher against the British pound, Swiss franc, and Canadian dollar, while losing modest ground to the Euro, Australian dollar, New Zealand dollar, and Japanese yen.

The Dow did end lower however, closing down by about 14.01 points, or 0.13 percent, the S&P 500 added 2.82, or 0.24 percent, and the Nasdaq added 19.72 points, or 0.80 percent.