Weekly Market Commentary: October 24th to 28th 2016

EURUSD – The EURUSD fell significantly lower last week as the recent bearish momentum continued with prices breaking down through 1.0900 key support on Friday and closing under that level. The next support is 1.0800 area and resistance is now seen up at 1.1125 and 1.1030 area. We are still looking to be sellers on any strength this week, ideally with a price action confirmation signal.


GBPUSD – GBPUSD remains bearish as it consolidates sideways. Momentum and trend are down, and we can look to sell on any upward strength whilst under 1.2855 – 1.3375.


AUDUSD – Our AUDUSD bias is now neutral given the markets recent strength, it appears to be in a range between 0.7730 – 0.7500 / 0.7460. We are sitting aside for now and will wait for more price action to unfold before taking action.


NZDUSD – The NZDUSD fell lower on Friday following Thursday’s bearish reversal bar at resistance at 0.7230, which we discussed as a sell signal that day in our members commentary. Look for more downside movement this week and watch any strength for price action selling opportunities whilst we remain under the key level 0.7230.


Crude Oil – Our views on crude oil have not changed since our last discussion; we are still looking to buy, in-line with the current uptrend and strong bullish momentum. Notice the key support / buy-zone between 49.30 – 47.70 and that prices bounced up from the 21 day ema (blue line); whilst prices remain at or above that support area, we can watch any weakness for buying opportunities. Upside targets are at 54.80 and beyond if bulls remain in control.


Gold – We remain bearish on Gold despite the bullish up-tick we saw last week. There’s plenty of resistance overhead and we will watch strength to get short, ideally on a price action sell signal.


S&P500 –We are taking a neutral to upward bias on the S&P500 after last week’s rejection off the lows. Notice the pin bar at 2107 area from last week and the two subsequent minor bullish reversals in succession late last week which saw prices bounce off 2125 and close at 2135. There’s potential for some upside here into 2160.00 at top of the recent range, offering a 1 to 2 risk / reward for savvy traders. One way to play it this week would be to look for a potential long entry on short-term pull back and ride price higher into top of the range. However, a close below the pin bar low on the chart below would invalidate the range and we will change our bias and update members accordingly if and when that happens.