Daily Market Commentary: November 4th 2016

EURUSD – The EURUSD consolidated today just under 1.1125, remaining buoyant into the day’s close. If price breaks above that level, we could see a larger run higher. If it holds below it, we would expect price to rotate lower. So it all depends on that 1.1125 for now.


GBPUSD – The GBPUSD rallied aggressively today, breaking and closing well above 1.2329 resistance on major news out of the UK. We are changing our recent bearish bias for now, to a neutral to mildly bullish bias. Short-covering has commenced and we could see a vacuum back up to resistance levels. We see any weakness in the near-term as a potential buying opportunity, ideally on a 1 hour, 4 hour or daily chart price action signal, targeting resistance up near 1.2860.


AUDUSD – We are removing our short bias on the AUDUSD and anyone still short would probably be wise to exit those positions and potentially consider getting long. It looks like an upside breakout could be imminent in this pair and we could look for buying opportunities on any near-term weakness above 0.7557 support area.


NZDUSD – Kiwi/dollar broke up through key resistance 0.7266 area this week and it appears bulls are clearly in control as with the other major USD pairs. We are amending our bias on this pair as well, from bearish to mildly bullish. We can watch for buying opportunities on any weakness in the near-term.