Daily Market Commentary: September 8th 2016

EURUSD – The EURUSD shot higher yesterday despite the bearish reversal bar from last Friday. Obviously, price action is very volatile right now and so it is best to stand aside and wait for ‘calmer waters’ to materialize. The key areas to watch for signals are resistance between 1.1340 – 1.1400 and support down near 1.1040 area.

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GBPUSD – The GBPUSD consolidated today, forming an inside bar within the resistance zone between 1.3375 – 1.3540. We are watching for sell signals here, but if price pushes up through 1.3540 it would be a potentially bullish sign that could lead to more upside.

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AUDUSD – Obviously a big surge higher occurred yesterday in the AUDUSD and price is now threatening to re-test resistance between 0.7690 – 0.7750. If that resistance zone cannot contain price, we could see a larger run higher, but that resistance zone is formidable and we will wait to see what happens there before taking further action.

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USDJPY – The USDJPY has started moving lower again after hitting a resistance level up near 103.50 following its last retrace higher. Notice how nicely this downtrend has been respecting resistance levels; as it retraces up to them it keeps reversing and moving lower again. This is why horizontal levels are so powerful in the market…

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Gold – Gold consolidated today following the big surge higher yesterday as the bullish momentum from last week continued. Notice that price bounced up from 1310 – 1300 key support late last week, a support area that we have been discussing as a buy-zone on a signal or blind entry for weeks now in our recent Gold commentaries. You will also notice that price is following through to the upside after a pin bar buy signal formed last week on the weekly chart time frame. Anyone not already long from this reversal can watch any near-term weakness this week to look to get long.

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