Daily Market Commentary: January 4th 2017

EURUSD – The EURUSD sold-off the last couple of days following the pin bar reversal signal that formed last Friday. This move was in-line with the overall downtrend in this pair. Anyone who is not already short can watch for upside retraces to the resistance zone at 1.0530 – 1.0670 to get short and rejoin the downtrend from value.

eurusd-jan-04

GBPUSD – The GBPUSD formed an inside bar setup yesterday and we can see today price broker lower from it. In our weekly outlook, we discussed that price had rallied up to 1.2335 resistance and whether or not held below that level would determine whether price moves lower again or higher. We see prices holding under that level so far this week and whilst that remains so, we can continue to look to get short either on a price action sell signal or on a rally back up to the resistance level.

gbpusd-jan-04

AUDUSD – The AUDUSD consolidated last week, moving sideways after its most recent leg to the downside. We will watch for selling opportunities on any temporary strength this week, to get short from value. Ideally, we would see a price action sell signal form up near 0.7310 resistance. We will remain bearish whilst below 0.7505. audusd-jan-04

US500 – The US500 uptrend continues to remain intact, but last week, prices did retreat a bit, approaching support levels. We are still looking to buy this market from support / value on pullbacks, and now that it is approaching 2212.00 – 2179.00 support zone we will keep a close eye out for price action buy signals to get long and re-join the uptrend.

us500-jan-04

Gold – Gold made a modest turn to the upside last week as it ran into a key support level near 1130.00, a level we have discussed in recent commentaries as a potential buying opportunity. At this point, we are remaining cautious buyers on Gold and will watch for a strong price action buy signal on the 4 hour or daily chart before initiating any positions.

xauusd-jan-04