Weekly Market Commentary: December 19th to 23rd 2016

EURUSD – Euro/dollar remains extremely weak
As we have been discussing in our recent members’ daily market commentaries, a strong downtrend remains intact in the EURUSD and we are looking to sell, to trade in-line with that trend. Notice the large bearish weekly pin bar on the weekly chart below, this pin remains activated and is a reflection of the stranglehold bears have on this pair right now. Price is likely headed down to parity (1.00) and traders can look to use pockets of strength to get short. Notice the containment zone between 1.0530 – 1.0670, watch for price action sell signal near that zone or the 8 and 21 day EMA layer.


GBPUSD – Sterling/dollar rotates down to support
Price weakened last week in the GBPUSD, but it’s still above 1.2334 key near-term support. We see that level as the line in the sand for bulls this week and we will wait to see what price action develops around that key support it this week. We will update you guys as anything new develops in this pair.


AUDUSD – Aussie/dollar false-break leads to price collapse
In recent commentaries, we warned that the AUDUSD could sell-off if it stayed contained under 0.7505 key resistance level. After a final attempt to crack 0.7505, price false-broke and has subsequently collapsed lower late last week. Bears are clearly in control of this pair right now and we remain firmly bearish on this and look to sell. Traders can watch for any strength this week for sell opportunities whilst price is under 0.7505 key resistance level.


NZDUSD – Kiwi/dollar sells-off from resistance level
The NZDUSD sold-off last week from the previously discussed key resistance up near 0.7220 following a false-break of that level early last week. We can look to sell on strength this week whilst prices remain under that 0.7220 containment area.


Crude Oil – Bulls still in control of Crude Oil for now
As we have discussed in recent Crude Oil commentaries, this market is currently trending higher and as we can see below, price is remaining buoyant above the previous mentioned support at 49.30. We saw price test the recent highs at $52.00 and move above before retracing lower last week. Price is now consolidating just above that $49.30 support before its next move. From here, we would ideally wait for a clean price action buy signal before re-committing to longs, or more experienced traders of crude might like to play longs intraday whilst price is still supported at or above 49.30 vicinity. Look to buy on weakness whilst trend is intact.


US500 – US500 consolidates before potentially pushing higher again
The US500 has been in a very strong uptrend for weeks now, which we have discussed in our recent commentaries. The uptrend remains intact with price strongly bid after breaking up through 2212 recently. Last week, we saw an inside bar setup indicating a move is imminent. We might see a false break lower followed by a strong recovery (fakey; inside bar false break) which is something to watch for early this week. Alternatively, we will watch for a subsequent price action buy signal on any pullback in the market. We expect prices to rotate back towards recent highs of core near-term support at 2212.


Gold – Gold in free-fall mode
Gold continued selling off last week, slicing down through 1130.00 support. We had been waiting for price action confirmation to consider speculative longs but there has been nothing considerable to tempt us long. We are going to wait for the chart to present an opportunity before committing to a view at present time.