Weekly Forex Chart Price Action Outlook for April 2nd – 6th 2012
In our commentary from Thursday, we discussed the obvious pin bar setup that had formed showing rejection of the key 130.00 level on the daily GBPJPY chart. We also discussed the possibility of price retracing some of the pin bar’s tail and providing for a 50% entry and thus a good risk reward ratio. We can see this setup has worked perfectly, and many of our members’ in the forum got long at the 50% level and are now up a nice profit. We see potential for price to move into the near-term resistance at 133.45 next week, however it will need to close above this level to open the door for an extended upside run.
The AUDUSD closed last week right on key support near 1.0350. If price continues its recent weakness by breaking below this support early next week, we could see an extension of the downtrend. Otherwise, we could see a rotation higher up into the 8 / 21 daily EMA resistance layer where we would watch for forex price action sell signals to rejoin the downtrend.
The EURUSD has been rather choppy over the last 2 weeks, and we can see this market is basically range-bound and moving sideways overall. We would note that price held above 1.3300 support last week, and the 8 / 21 day EMAs are reflecting bullish momentum. A re-test of 1.3485 could be a possibility before price moves significantly lower again, but there’s not much to do right now but wait and see if any price action forms near the key support and resistance levels marked in the chart below.
Gold formed a bullish rejection pin bar strategy off key support near $1640.00 last week. We can see on Friday price popped marginally higher off this pin. Next week, we still see potential for price to push higher into the near-term resistance near $1700.00, however gains will likely be limited if price cannot close above that level.
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