Daily Market Commentary: November 2nd 2016

EURUSD – Euro/dollar rallied again today as price continues to retrace higher. There is still key resistance coming in overhead near 1.1125 and we will watch that level closely if price tests it in the coming days. For now, we are standing on the sidelines and will wait for price action to develop before taking any action.

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GBPUSD The GBPUSD has been in a sideways pattern of tight consolidation in recent weeks. This pair is in a downtrend overall and we are looking to be sellers on a price action signal on any upward strength whilst under 1.2855 resistance.

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Gold – Gold continues to rally higher following a strong sell-off we saw in the beginning of October. We are watching the key resistance zone up near 1300 – 1310 for potential sell signals should price test that zone in the coming days.

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Crude Oil – Crude Oil has closed under the key support zone we were watching recently, closing under 47.70. Bearish momentum has picked up recently and we could see price try to re-test the bottom of the range down near 43.00 in the coming days. Traders can consider getting short if we get a price action sell signal up near 47.70 – 49.30.

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S&P500 The S&P500 has been grinding lower and consolidating in recent weeks and we can see today price sold off and closed under 2105 key support. A Trump victory in the U.S. presidential election could send the market much lower in the short-term and the market is pricing in risk here as we can see it has already starting to turn mildly bearish in recent weeks. We can look to sell strength this week with targets into 2100 or even slightly lower.

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