Weekly Market Commentary: November 7th to 11th 2016

EURUSD – Price rallied hard last week in the EURUSD, closing up above 1.1125 resistance on Friday. We could see more upside this week, but volatility will be high with the US election coming on Tuesday. Traders can potentially look to get long on a 1hr, 4hr or daily chart buy signal following weakness, targeting 1.1280 resistance. But again, be vigilant with the expected increase in volatility.

nov-07-eurusd

GBPUSD – The GBPUSD rallied aggressively last week, breaking and closing well above 1.2329 resistance on major news out of the UK regarding ‘Brexit’ requiring a vote in Parliament. We updated our previous bias on the GBPUSD last week, to a neutral to mildly bullish bias. Short-covering has commenced and we could see a vacuum back up to key 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.

nov-07-gbpusd

AUDUSD  Last week, we discussed that we removed our previous 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.

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S&P500 The S&P500 continued to trend lower last week, breaking and close under 2105.00 key support, which has now flipped to resistance. We see the potential for high volatility this week ahead of the U.S. election and potentially during it. Traders should wait and see what develops after the election results roll in on Tuesday evening U.S. time. For now, we are bearish biased and will be watching for potential selling opportunities on any strength.

nov-07-us500

Gold Gold has surged higher in recent weeks and is now within a key resistance zone that we have talked about recently, between 1300 – 1310. The best move is to wait and see what develops in the wake of the election results on Tuesday. We could see price fall from here or break higher through this resistance. We will wait for price action to develop and ideally will wait for the election results before committing to one side of this market.

nov-07-xauusd

Crude Oil Crude Oil has been very weak in recent weeks, selling off with ease. This market could collapse if Trump wins the U.S. presidential election. This chart is very bearish after failing at 51.60 resistance. Looking to be a seller on strength is the likely play here this week but expect volatility due to elections so be careful and wait for clear price action signals before taking any positions.

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