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Weekly Forex Market Price Action Outlook – October 27th – 31st 2014
EURUSD – Euro/dollar downtrend continues
The EURUSD ended lower last week after rotating down from 1.2855 resistance earlier in the week as we discussed in our October 21st commentary. We remain bearish biased on this market and will continue watching for price action sell signals from resistance to rejoin the downtrend as we can see the longer-term downtrend is still clearly in effect and key support isn’t seen until down near 1.2040 area.
AUDUSD – Aussie/dollar consolidates after fakey sell signal, bearish bias remains
The AUDUSD put in a rather volatile day on Friday, selling off initially then moving higher and erasing those losses only to back off the highs into the day’s close to end the day up slightly. As long as price stays below that resistance near 0.8835 – 0.8900 on a closing basis this week, we see potential for price to fall lower and for the downtrend to continue from the fakey pin bar sell signal that we discussed in our October 21st commentary.
NZDUSD – Kiwi/dollar weakness continues after pin bar sell signal
The NZDUSD moved slightly higher on Friday but still ended down significantly for the week following Tuesday’s pin bar sell signal at the event area up near 0.8040 area, which we discussed in our members trade setups newsletter October 21st. This week, we could see price re-test support down near 0.7710 if bearish momentum continues. However, if price retraces higher we will watch for a price action sell signal from resistance to rejoin the downtrend.
USDJPY – Dollar/yen continues higher
The USDJPY surged higher last week and we can see that price has now moved significantly higher following the 1 hour pin bar buy signal that we discussed back in our October 15th commentary. Anyone who held that trade would be up a very nice profit now. The trend is obviously still up in this market and we will continue watching for price action buy signals on any retraces back to support in the coming days. Key resistance is coming in up near 110.00 area and this level could cause price to rotate significantly lower again if it tests it in the coming days.
Gold – Gold rejects key level, potential downside in store
The spot Gold market rotated up to the key level near 1250.00 last week but failed to maintain itself above it, creating a false break / pin bar on the weekly chart that could trigger a resumption of the recent downtrend in this market. Traders could consider a 50% tweaked trade entry trick sell entry on this pin bar if price retraces a bit higher early this week on the daily chart. More aggressive traders may look to sell near current levels with an understanding that doing so would require a wider stop loss above last week’s high.
In this week’s members weekly trade setups newsletter, we will discuss in more detail, our thoughts on the EURUSD, GBPUSD, AUDUSD, NZDUSD, USDJPY, Gold and more. To learn about becoming a member, click here.