Daily Market Commentary: October 27th 2016

EURUSD – The EURUSD tried to rally higher today but ran into resistance up near 1.0950, a previous key level as we can see below. Price could fall lower from today’s bearish reversal bar, and there is also a 4hour chart bearish pin bar that formed here today. However, we would like to see more protrusion from this pin, so it isn’t really ideal. You would really need a stop loss up above the high of the big bearish reversal bar from October 20th if you traded this pin, so make sure you adjust your position size accordingly and as always, trade at your own risk.

oct-27-eurusd

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.

oct-27-gbpusd

AUDUSD – As we can see below, a large bearish pin bar formed today in the AUDUSD, just below 0.7730 key resistance, indicating that bears may be ready to push this market lower again. We would look to target 0.7500 area on any potential short entries.

oct-27-audusd

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.

oct-27-nzdusd

S&P500 – We are taking a neutral to upward bias on the S&P500 after last week’s rejection off the lows. 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.

oct-27-us500