Weekly Market Commentary: November 21st to 25th 2016

EURUSD – Euro/dollar sell-off accelerates

The EURUSD sell-off continued last week as prices capitulated lower. Price is approaching a key support level down near 1.0500 area, but we remain bearish on this pair and will watch for any strength this week to get short. Traders can watch the 8 / 21 day ema layer or for selling opportunities, with the key sell-level being up near 1.0850; whilst under that level we remain aggressively bearish.

nov-21-eurusd

GBPUSD – Sterling/dollar sitting on important support level
The GBPUSD has held up better than the EURUSD in recent weeks, but price moved lower last week and is now resting just above a key near-term support at 1.2335. If bulls cannot hold the line at current levels, we would expect to see price break under that support this week which could set off a larger move to the downside.

nov-21-gbpusd

AUDUSD – Aussie/dollar loses ground in dramatic sell-off

The AUDUSD continued to sell-off last week in dramatic fashion, continuing the bearish momentum of the previous weak after the false-break of resistance up near 0.7735. There’s plenty of room for this market to fall further, so we can look to be sellers this week on any upside strength. Resistance up near 0.7440 area would be the key area to look to sell from should price rally this week.

nov-21-audusd

USDJPY – Dollar/yen strength continues, looking to buy on pullback

As we have discussed in recent members market commentaries on the USDJPY, the trend appears to have turned as the Yen has weakened across the board. It looks like the USDJPY found a short-term bottom and is now pushing firmly higher; note the large bullish pin bar where price reversed from lower to higher and closed above that level. We’ve had followed through to the upside and any short-term retrace lower could be a buying opportunity. We are looking to buy above 106.80 this week and traders can watch for buy signals on any near-term weakness, perhaps near the 8 / 21 day EMA dynamic resistance layer with plenty of upside potential in this pair.

nov-21-usdjpy

GBPJPY – Sterling/yen remains strong, looking to buy on pullback

As we have discussed in recent commentaries on the GBPJPY, the trend appears to have turned as the Yen has weakened across the board. It looks like the GBPJPY found a short-term bottom and has reconnected back through 129.50, note the large bullish pin bar where price reversed from lower to higher and closed above that level. We’ve had followed through to the upside and any short-term retrace lower could be a buying opportunity. We are looking to buy above 130.35 and traders can watch for buy signals on any near-term weakness, perhaps near the 21 day EMA dynamic resistance level, looking to target key resistance up near 138.50 area.

nov-21-gbpjpy

US500 – US500 remains buoyant, still looking to buy on pullback

The US500 moved higher again last week as the bullish momentum following the U.S. election continues. Our views haven’t changed on this market; we are still looking to get long on weakness, ideally down near support around 2150.00 area to 2106.00 on a 1 hour, 4 hour or daily chart price action buy signal.

nov-21-us500