Daily Market Commentary: January 6th 2017

EURUSD – The EURUSD is back within the recent discussed resistance zone between 1.0530 – 1.0670. We are waiting to see what unfolds here and we would prefer to see an obvious 1hr, 4hr or daily chart price action sell signal up near 1.0670 before selling.


AUDUSD – The AUDUSD seems to have gotten some traction over the last few days and is now pushing higher after easily breaking and closing above 0.7310 resistance. We wouldn’t be surprised to see price try to move up and re-test key resistance up near 0.7505. We still favor the short side in this pair and will wait for a clear price action sell signal to form near resistance levels before jumping back in.


Gold – Over the last two weeks, Gold has bounced up after running into a key long-term support level down near 1130.00; a level we have discussed as a potential buy-point in our recent commentaries. We remain bullish in the near-term on Gold whilst it’s above 1130.00 and will continue to watch for pullbacks to be buyers, ideally on a price action buy signal. We see the potential for upside movement at least into 1220.00 area.


S&P500 – The S&P500 continues to trend higher and our recent views of looking to buy on pockets of weakness remains valid. We are still looking to buy this market from support / value on pullbacks, and we can see 2212.00 – 2179.00 support zone is the nearest key support on the daily chart. Note that an inside pin bar pattern formed today and if price remains buoyant here we could see a break higher, in-line with the uptrend. Keep in mind, a false-break of this inside bar pattern is also possible, before price moves higher. Meaning, it could break lower and then suck back up, creating a fakey / false-break, before pushing higher again.