By Casey Stubbs— Follow Casey On Twitter
Last Week we saw the Euro do a large about face, right when many analysts were predicting higher prices in the Eur/Usd. Despite all of the up and down news that has been revolving around the Eur/Usd. The pair has traded in nice clean trading patterns. I want to point out to you the weekly chart, every week I go through all the weekly charts in order that I have an idea of direction of the pairs I will be trading. I use candlestick patterns to help me identify direction in conjunction with support and resistance levels.
Here is a chart of some key highlights I that I noticed when Studying the weekly chart.
Next I drop down to the daily and once I see that I will get more clues as to how I want to trade the pair this week.
IF there is a bounce off the daily level to the upside then we have to watch the weekly resistance level so if that happens we will most likely be in range trading conditions for some time.If the price breaks that support and closes lower look for a breakout trade to the downside. I recommend that you read the weekly Outlook for the Eur/Usd by Forex Crunch to assist you in developing your trading plan for this week. Also Look at the Eur/Usd Technical Analysis at Forex Abode. One last place to get some great analysis is the Proactraders Blog, I do a lot of my own analysis but I like to read others as well to keep myself sharp and also to build off of others work.
There is another pair I want to breifly mention here and that is the Aud/Usd. This is one of my favorite pairs along with the Nzd/Usd because they have both been very easy to trade in the last few years because of nice wide swings that are great to ride. Right now however we have been stuck in a range which presents a great opportunity for a breakout trade for the patient trader. Lets take a look at the chart.
Keep your eyes on that because the tighter the range becomes the easier it is to trade a breakout.
I am closing with a recommendation for you all to read the Forex Ten Commandments! I read it and found out that I was disobeying some of them. What about you?