Weekly Forex Market Chart Analysis – October 7th to 11th 2013

By Nial Fuller   Posted in Forex Trading Commentary   

EURUSD – Euro/dollar retraces back to dynamic support

The EURUSD retraced down into the 8 day EMA dynamic support level on Friday as the uptrend takes a breather. Overall, the trend is still up and we can clearly see bullish momentum dominating the daily chart below. This week, we will be watching for price action strategies to buy from support in order to trade back in-line with this uptrend. If the market rotates down toward the 21 day EMA and the near-term support between 1.3460 – 1.3400 we would definitely be watching the 4 hour and daily charts for buy signals. Key longer-term support is seen down around 1.3100 area.

GBPUSD – Sterling/dollar sells off from key resistance

Last Tuesday, a small counter-trend pin bar formed in the GBPUSD, and if you zoom out to your weekly chart you can see this pin bar whilst small, occurred at a key longer-term weekly resistance level up near 1.6300 that price has been unable to break through over the last couple of years. Thus, because the pin bar formed at this very important / key resistance level, it is not surprising to see the large sell-off that we saw on Thursday and Friday of last week even though the pin bar itself was a bit smaller than we’d like. Price is now facing some near-term support down near 1.5955 that could cause the recent uptrend to resume if we can get some bullish price action forming near that support.

AUDUSD – Aussie/dollar strength continues

The AUDUSD has remained buoyant since September 30th when it re-tested the key support zone that starts down near 0.9300. This week, we see the potential for more strength in this market if it continues to hold above 0.9300 – 0.9220 key support zone. Traders can continue to look for price action buy signals as this market retraces back to support in order to trade in-line with the recent uptrend in this market.

Gold – Spot Gold trading just above key support

The Spot Gold market has been trending lower recently and we can see in the chart below there’s a very important / key support level coming in close below around $1275.00. If the market holds above this level this week we could eventually see it make a run higher. However, if the market keeps trending lower and closes below this key near-term support we could see a larger move lower as the next key support is not seen until down around $1180.00.