Daily Market Commentary: January 11th 2017

EURUSD – The EURUSD remains contained under 1.0670 key resistance and price formed a small bearish pin bar just below that level today. We could see price fall lower following this pin bar. Whilst it is not a very big pin, it has formed within the downtrend after a retrace higher and near key resistance. Also, notice how today’s small pin is within the range of the larger bearish pin bar December 30th, this is something to be aware of, as that larger pin bar is clearly still valid, so it gives more weight / confluence today’s smaller pin.


GBPUSD – The GBPUSD broke down from 1.2335 key resistance this week following last Friday’s false-break, as we discussed as a possibility in this week’s weekly outlook. We remain bearish whilst under that level and traders can look to sell on a 1hr, 4hr or daily chart sell signal.


US500 – The US500 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 last Thursday, which we discussed in our members commentary that day. Price subsequently broke up and out from that pattern as we expected. We see the potential for this uptrend to continue and traders not already long can keep looking for 1 hour, 4 hour or daily chart buy signal on any weakness down, ideally near the 21 day EMA or previously mentioned support levels.


Oil – Crude Oil has pulled back so far this week, but it’s still above key support near 49.30. We are still watching for buy signals near this support and as price draws nearer to it, we will continue to watch it closer.