Daily Market Commentary: December 2nd 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.


GBPUSD – The GBPUSD broke up from an inside bar setup today, that we discussed yesterday here in the members area. We could see this market try to re-test key resistance up near 1.2850 again. Traders who missed the long entry can look to get long on weakness whilst above 1.2335.


GBPJPY – The GBPJPY shot higher today and yesterday after a brief pullback on Monday, followed by a bounce at support near 138.60 yesterday. We have been talking about looking to buy this pair on any weakness, in recent commentaries. Notice price pulled back to that horizontal level and then surged higher again. Traders who missed this can continue to watch weakness for buying opportunities.


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.


Oil – Crude Oil has surged higher this week in dramatic fashion. We can look to buy on any weakness, ideally down towards support levels. We see support down near 49.20 area; a good area to watch for intraday or daily price action buy signals on a retrace or potentially a blind entry.