During last week we saw US dollar strength on several pairs such as EURUSD Falling over 300 pips, GBPUSD over 200pips, Close to 200 pips + on dollar strength on the USDJPY Along with several others as well.
Personally I think the EURUSD will continue short towards 1.3000. But in order for this to continue the EURUSD will need to not only break 1.3000 but will to need to close below 1.2970 on the 4 hour chart and IF this happens the EURUSD could possibly head towards 1.2600 area.
Now if the EURUSD is not able to maintain dollar strength look for the bounce and for it to head back towards 1.3167 and maybe towards the 1.3200 area.
GBPUSD: The GBPUSD in my opinion will be like the eurusd and continue with dollar strength, but will be a choppy ride down. Heading back towards the 1.5800 area, please note that 1.5817 is still an area of strong resistance and the GBPUSD will need to close below it and 1.5800 with confirming candles on the 1 hour chart and I would like to see a candle close below that level on the 4 hour chart to. And IF this happens we could see the GBPUSD head back towards 1.5740 area with possibilities of going to 1.5695.
Now if the GBPUSD gains strength against the dollar I am looking for it to head towards 1.5900 and maybe on up to 1.6017 area.
Please note that at each level the price could stall and go in the opposite direction so please use caution when evaluating your entry. I look for what I call a True Close in most cases, and that is 1st the break, then 2nd a candle close and 3rd a confirming candle close on whatever direction and time frame I am watching.
Please be aware that the INTRADAY trades if taken have the ability of becoming your swing trades. But if for any reason I become uncomfortable with that trade I will close it and take my profit where ever it may be.
Please note that in many case my entry’s long become my stops Short and my entry’s Short become my Stops Long. And in some case I will extend my stops beyond those levels. So please take that in consideration when placing your trade and lot allocation and money management.
Please note the Forex market is very fluid and volatile and can and has changed very quickly. So if at any point in the trade I feel uncomfortable with my trade, charts or any other events, I could stand aside not enter or close the trade. Also I as far as take profit goes I feel one should take their profit where ever they are happy at. I am looking for my targets but if for any reason I am either comfortable or uncomfortable I will take my profit.
All trade entry’s/levels are based on my opinion on what I see on my charts and the indicators that I use for myself and any trades taken should be done with due diligence and that individual assumes full responsibility for his or hers trades.
WEEKLY MARKET ANALYSIS – 9TH APRIL 2012