Daily Market Commentary: October 5th 2016

EURUSD – The EURUSD moved sideways last week as it continued to consolidate just below 1.1300 near-term resistance. This pair is stuck within a larger trading range between 1.1400 and 1.0900, and we can look for price action signals to sell near resistance levels or buy near support levels. But for now, we will remain on the sidelines until clearer price action clues develop.

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GBPUSD – The GBPUSD has fallen lower so far this week as we expected. We have been bearish on this pair for months now. Notice how far price has fallen from the inside bar pattern back on Sept. 7th which we discussed as a sell signal shortly after it formed.

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AUDUSD – The AUDUSD tested a key overhead resistance zone up at 0.7700 – 0.7760 area last week. However, price could not muster the strength to close within that zone, a sign that bears are still containing price. In addition to the nearby resistance at 0.7700 – 0.7760, the line in the sand for sellers is 0.7830 key resistance, and we are short biased until a convincing close above that resistance. Look for short-selling opportunities in the near-term.

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NZDUSD – The NZDUSD is also looking weak and it closed under support at 0.7200 today as this pair is looking increasingly top-heavy. Price could fall down to key support near 0.7000.

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Gold – Gold broke and close down through 1300.00 key support today, indicating that bears are in control now. We could look to get short on strength / a retrace up near 1300.00 key resistance area.

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