Weekly Price Action Trading Outlook for December 17th – December 21st 2012

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Weekly Price Action Trading Outlook for December 17th – December 21st 2012

EURUSD – Euro/dollar near key resistance after big surge higher

The EURUSD gained ground everyday last week after finding support near 1.2875 and moving significantly higher up into key resistance at 1.3170. This week, the price action near that key 1.3170 resistance will be critical in determining whether this market breaks up and out of its recent trading range or rotates lower back within it. We would need a daily close above 1.3172 to really say that the market has officially broken out of it’s trading range. We might also keep our eyes peeled for a potential false break of 1.3172 resistance and then a subsequent move back down into the trading range. Overall, momentum is more bullish in this market but we have to wait and see what develops early this week around this key resistance level and then act accordingly.


GBPUSD – Sterling/dollar sitting just below key resistance

The GBPUSD gained substantial ground last week as the pair shot up from 1.6000 support and ended the week just below key 1.6175 resistance. This week, if this market is to extend it’s recent run higher it will need to break up and close above that key 1.6175 resistance level. We will need to watch this resistance closely in the first half of this week as we could see a false break of it, a strong breakout and close above it, or a price could simply rotate lower early in the week and move lower towards support. Given the recent bullish momentum in this market, we are more bullish biased overall and would watch for price action buy signals if the market does rotate lower this week.


AUDUSD – Aussie/dollar pushing higher towards key resistance

The AUDUSD moved higher last week as the underlying uptrend continued. This market is grinding higher towards key 1.0624 resistance and if this bullish momentum continues this week we could see price retest that key resistance this week. Traders can watch for price action buying opportunities this week if this market retraces back down into support. If the market does test 1.0624 key resistance we will keep a close eye on that level as we could see price stall there or retrace lower from it, especially if we get some obvious 4 hour or daily chart bearish price action near there.


USDJPY – Dollary/yen uptrend intact, looking for buy signals from support

The USDJPY lost slight ground on Friday and showed some rejection of higher prices as the recent rally took a breather. The Japanese yen is still very weak against most of the major currencies but after such large moves against the yen in the dollar, euro and other majors, we would prefer to wait and watch for a pullback to support and a price action trading strategy forming from support before entering long. If the USDJPY rotates down into support near 82.82 we can begin keeping our eyes peeled for a 4 hour or daily chart price action buy signal to rejoin the uptrend.


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Upcoming important economic announcements (New York time): 12/16/2012

All Day: Japan – Lower house Elections


9:30am EST: Euro-zone – ECB President Draghi Speaks
7:00pm EST: New Zealand – ANZ Business Confidence
7:30pm EST: Australia – Monetary Policy Meeting Minutes

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