Weekly Price Action Trading Outlook for April 8th to April 12th 2013
EURUSD – Euro/dollar shows fresh bullish momentum from 1.2750 support
The EURUSD pushed significantly higher last Thursday and Friday after forcefully rejecting support down near 1.2750 and creating a false break of that level. Note that price moved up to just under 1.3050 key resistance before paring some of its gains into the NY close on Friday. This week, we could see the market trade between resistance at 1.3050 and support near 1.2875 in the first part of the week. Given the force of the up move into last week’s close we could see more bullish momentum in the coming days, traders can consider a long entry this week if the market retraces back down to support near 1.2875 or further below near 1.2750 and forms an obvious 4 hour or daily chart buy signal.
GBPUSD – Sterling/dollar closes above key resistance
On Friday, the GBPUSD finally broke out of the consolidation range between 1.5260 – 1.5025 that we’ve discussed recently. In the chart below, we can see that the breakout was clean and significant since it closed well above the key resistance at 1.5260, indicating that more upside is possible in this market. Note the daily 8 / 21 EMAs have also crossed higher recently, reflecting the fresh bullish momentum in this market. This week, traders can watch for obvious price action buy signals on the 4 hour or daily chart time frame if the market pulls back into support.
AUDUSD – Aussie/dollar at critical support level
The AUDUSD moved lower again on Friday but did manage to halt losses just above key support near 1.0375, ending the day just above that level. This market is clearly in a trading range right now oscillating between 1.0375 support and resistance at 1.0496. This week, we could see the market continue to trade within this range early in the week, a price action buy signal down near 1.0375 could be a good potential long opportunity to trade back up towards resistance. However, if the market continues to weaken and breaks below 1.0375 we could see the recent down move continue. The price action around this 1.0375 will be critical early this week so keep a close eye on it.
USDJPY – Dollar/yen strength continues
The USDJPY continued surging higher on Friday after Thursday’s big explosion higher from the pin bar trading strategy that formed last Tuesday. The uptrend is clearly still intact in this market and traders can watch any retraces back to support this week for buying opportunities. Keep an eye out for price action buy signals near the dynamic support at the 8 / 21 day EMAs as well as the horizontal support through 94.50 if price retraces this week.
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Upcoming important economic announcements (New York time): 4/7/2013
7:50pm EST: Japan – Current Account
7:00pm EST: New Zealand – NZIER Business Confidence
7:15pm EST: United States – Fed Chairman Bernanke Speaks
9:30pm EST: China – CPI y/y