Weekly Price Action Trading Outlook for March 25th to March 29th 2013

EURUSD – Euro/dollar remains a potential sell below 1.3135 resistance

The EURUSD managed to hold above key support at 1.2875 last week, moving higher into Friday’s close after chopping sideways earlier in the week. This week, as long as the market is contained below 1.3135 key resistance on a closing basis, we are looking to sell the market on an obvious 4 hour or daily chart price action sell signal. Traders can watch the resistance from current levels to up around 1.3135 for a nice 4 hour or daily chart pin bar sell signal for fakey signal to trade back in-line with downtrend. A close above 1.3135 would neutralize our current bearish bias.

GBPUSD – Sterling/dollar pushing up toward weekly resistance

The GBPUSD has regained some of its recently lost ground over the last two weeks as we can see in the weekly chart below. We should note that the long-term trend is still down and this current up move is simply a counter-trend retracement within that broader downtrend. Still, the daily chart has shown some strength over the last two weeks and we have to respect that strength until the price action shows us it might be ending. We would note that in the weekly chart below the market is approaching a key zone of resistance from about 1.5250 up to 1.5450, and any obvious 4 hour or daily chart sell signal forming within that resistance area could be a potential trigger for the downtrend to resume. A nice daily chart long-tailed pin bar reversal showing rejection of that resistance would be an ideal sell signal to watch for in the coming days.

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