Weekly Market Commentary: August 8th to 12th 2016

EURUSD has been choppy and erratic lately and as a result, it’s difficult to determine the short-term bias of this pair. Notice that price did reject resistance up near 1.1185 last week as it made a false break of that level. We will wait for price action signals for guidance this week and we can clearly see 1.1160 – 1.1185 is a key near-term level to keep our eyes on in the near-term.

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GBPUSD fell lower late last week as it neared the key resistance area we discussed in our recent commentaries, up near 1.3520 – 1.3400. We will continue to look to sell rallies (strength) this week whilst price is contained under resistance at 1.3520. We can see a clear resistance zone between 1.3375 – 1.3520 that we can look to sell in or near, ideally on a 1 hour, 4 hour or daily chart price action signal.

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AUDUSD continues to look range-bound and we can see on Friday it hit key resistance up near 0.7670 and pulled back into the day’s close. This week, we will watch 0.7669 – 0.7700 core containment area for potential selling opportunities as this area previously contained prices. We prefer to wait for a clean price action sell signal before entering. We could see price rotate to the lower side of the range, to 0.7420 key support area if it stays contained under that resistance zone.

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USDJPY downtrend continues and we are looking to sell any rallies this week as we can see recent rallies have been met with intense selling pressure. If price rallies up to resistance near 103.60 – 103.90 area we will be watching closely for price action sell signals to rejoin the downtrend from value.

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Gold we remain bullish on Gold as we have been for months now. We could see a buying opportunity on Gold early this week to enter down near 1320.00 – 1310.00 near-term support either on a blind entry or on a price action buy signal on the 1 hour, 4 hour or daily chart time frame.

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Crude Oil staged a modest rally to end last week, but we can see recent momentum and trend have been down so we are watching this rally closely for a reversal / sell signal to rejoin the downtrend. We are watching 44.40 as the key level to look to sell from or near this week.

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