Here's How to Trade This Week's Currency Market Price-Action Forecast
NEW YORK (TheStreet) -- Here's the forecast for the week of June 9-13.
EUR/USD - Euro/dollar false-break / pin bar buy signal at support
The euro has been weak recently against the U.S. dollar. However, late last week, a large bullish pin bar reversal / false-break formed after price tried to continue lower on Thursday but was met with a flurry of buying interest to end the week with a slight gain.
Note the consolidation and support near 1.3585. The false-break of this area suggests the euro wants to retrace higher and perhaps test the next resistance up near 1.3780 area. Since this pin bar signal has a huge tail, we will ideally wait to enter on a retrace of the pin, down near the halfway point of the bar. This allows us to get a tighter stop and better potential risk reward ratio on the trade.
Trade idea: Buy on a pullback in price to around the halfway point of the pin bar signal's range around 1.3575 to 1.3595 area.
EURUSD Daily Time Frame
The British pound against the U.S. dollar longer-term / weekly chart uptrend is still intact. We can see on the daily chart below that price has found a bottom down near 1.6695 area. If momentum continues to remain bullish in the coming days and price stays above 1.6695 key support, we could see the market continue higher and re-test key resistance up near 1.6920 soon. Trade idea: Look to buy on a pullback in prices to the mid-to-lower 1.6700s area, maintain bullish bias whilst above 1.6695 support.
GBPUSD Daily Time Frame
AUD/USD - Aussie/dollar grinding higher from key support
There's a clear trading range in the Australian dollar against the U.S. dollar right now between key support near 0.9205 and key resistance up near 0.9450. This week we could see the market complete its ascent up toward the top of this trading range and test the waters between 0.9380-0.9450 before falling significantly lower again. Trade idea: Look to buy on a pull-back in prices to mid-to-high 0.9200's area, maintain a bullish bias while above key support near 0.9205.
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