Daily Market Commentary: November 30th 2016

EURUSD – The EURUSD continued to lose ground last week following the break down through 1.0855 – 1.0900 area recently. That area is now seen as strong resistance / containment and we are looking to be sellers whilst under it. We want to stay with the path of least resistance, which is clearly to the downside right now, and we will be waiting for prices to stage a short-term bounce, then look to aggressively sell short. Traders should keep an eye on the 4-hour or daily chart for price action sell signals on any strength this week.

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GBPUSD – The GBPUSD has remained buoyant above 1.2335 key support so far this week, briefly breaking down from the small inside bar pattern from last Friday but then pushing higher today, essentially creating a bullish fakey. We still see potential for upside movement whilst above 1.2334 with key resistance not seen until 1.2850 area.

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AUDUSD After failing at major resistance at 0.7800, the AUDUSD has collapsed lower and subsequently given up the 0.7440 level as well as 0.7500 to 0.7565 core support / containment zone. The short-term dynamics have now turned bearish in this market. We would be sellers if price moved towards that 0.7500-07565 resistance area or on a clear price action sell signal. We will be waiting for prices to stage a short-term bounce and we will then look to aggressively sell short. Traders can keep an eye on the 4 hour or daily chart for price action sell signals in the short term.

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Gold Gold is approaching a key long-term support area down near 1140.00 – 1180.00. This market has lost a lot of ground in recent weeks and it’s likely we will see some kind of ‘dead-cat bounce’ from these extreme price zones in the next few weeks. We wouldn’t be keen sellers at these prices, and would rather look to be opportunistic at the 1140.00 handle and watch for convincing buy signals on 4-hour or daily chart to confirm an entry.

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US500 The US500 is essentially in a runaway uptrend right now. As we know from recent history, these upward legs can last far longer than people tend to think, so avoid being on the short side whilst the uptrend remains intact. Savvy traders need to be opportunistic and use any price weakness as a buying opportunity, watch for pullbacks to the 8 or 21 day ema. You may not see a clean price action buy signal, so the more experienced trader may elect for the relevant support levels.

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