Daily Market Commentary: December 14th 2016

EURUSD – The EURUSD downtrend remains intact following last week’s rally and subsequent reversal at key resistance near 1.0855 – 1.0900. A look at the weekly EURUSD chart will show you a big bearish pin bar reversal formed last week, reflecting the bearishness in this pair right now. We will continue to look to sell whilst price is under that key resistance / containment area by watching for strength to get short. Traders should watch the 1 hour, 4 hour or daily charts for price action sell signals following any strength to get short.

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GBPUSD – After surging higher in recent weeks, the GBPUSD pulled back modestly last week, but is still remaining buoyant above the key near-term support level at 1.2335. That level is currently the line in the sand for bulls and we are looking to be a buyer whilst price is above it. Traders should continue to watch for price action buy signals whilst price is at or above that support level, and there’s upside potential into 1.2877 resistance area.

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AUDUSD – The AUDUSD has rallied back up to key near-term resistance at 0.7505 following a dramatic reversal and sell-off from 0.7735 key resistance back in early November. We are still looking to trade in-line with that bearish momentum and this recent retrace higher may be presenting us with a nice opportunity to do so. Traders can look to get short this week near current levels or closer to 0.7505 on any early strength. We remain bearish whilst prices remain under that 0.7505 key resistance level on a closing basis.

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US500 – The runaway uptrend remains underway in the US500. We can see near-term core support at 2210.00 and we are looking to buy on any pullbacks in this market in the coming days. Avoid being on the short side whilst the up-trend remains in tact. Savvy traders need to be opportunistic and use any price weakness as a buying opportunity, near 8 or 21 day ema.

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