Daily Market Commentary: November 23rd 2016

EURUSD – 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.

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GBPJPY – We commented on the GBPJPY daily chart last week in our November 16th commentary, where we discussed the fresh uptrend underway in this pair and that we were looking to get long on a pullback. Our views have not changed; we still are looking for a buying opportunity to get long GBPJPY, in-line with this fresh bullish momentum. Traders can look for any weakness or a price action confirmation signal on the daily chart to get long as we anticipate this uptrend will resume after a pullback. Watch the 21 day ema value (support) area as well as support near 1.3235 for potential buying opportunities. You will notice the large bullish pin bar that formed the week before last, that was really the event that signaled us to start looking for buying opportunities in this pair. Patience will be rewarded as this current up-move could be the start of something more substantial as there’s potentially 1,000 pips of upside from 133.00 area into the overhead key resistance up near 143.00.

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GBPUSD – 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.

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AUDUSD – 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 – 0.7505 area would be the key area to look to sell from should price rally this week.

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US500The 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.

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