Daily Market Commentary: August 18th 2016

EURUSD – The EURUSD broke up through 1.1185 key resistance (now support) yesterday, a level we have been talking about in recent commentaries. It appears bulls have won this ‘battle’ and prices are now likely to continue higher at least into 1.1400 key overhead resistance where it could reverse from there. We are in hurry up and wait mode currently and can watch for sell signals up near 1.1400. This market is basically in a big trading range and we favor looking to sell from resistance at this point in time.

AUGUST-18-EURUSD

GBPUSD – The GBPUSD stalled today, consolidating and going nowhere. However, overall trend and momentum are still down in this pair and whilst under 1.3533 we are bearish on the GBPUSD. Traders not already short can continue to look for price action sell signals on any near-term strength this week whilst under 1.3533 key resistance to rejoin the downtrend from value.

AUGUST-18-GBPUSD

S&P500 – We can see a pin bar formed today in the S&P500 that is in-line with the uptrend. Normally, we like to see a deeper pullback and the pin form closer to support, but given the strength of this uptrend it wouldn’t be surprising to see prices move higher from here. More conservative traders may elect to look for a buy signal / wait for a pullback to 2150.00 before looking to get long.

AUGUST-18-US500

Gold – Gold continues to ‘wind up’ tighter and tighter as it consolidates just above the key support zone at 1320 – 1310. We are looking to buy this market , ideally on a deeper pullback closer to 1320 – 1310. But a break above the highs of the bearish tailed bars from this week could potentially be a buy signal as well.

AUGUST-18-XAUUSD