EURUSD – The EURUSD moved higher today and re-tested 1.0670 key resistance, backing off the day’s highs and ending at 1.0615. Whether or not price can push above 1.0670 and close above it, will show us a lot about this market right now. We will wait and see what develops over the next two days and update you guys in the weekly outlook on our views.
GPBUSD – The GBPUSD reversed today, up near 1.2335 key resistance, a level we have been talking about in all recent commentaries. We see today’s reversal as a potential sell signal if prices can stay contained below the highs from that false break back on January 5th. Plenty of downside potential below 1.2335 in the GBPUSD, as we can see below.
AUDUSD – The AUDUSD had made its way all the way back up to 0.7505 key resistance, breaking above but closing just below that level today. This level is a line in the sand for bears right now; below it and prices are likely to fall again, if we close above it, it opens the door for more upside gains into 0.7334 area.
USDJPY – After the 4 hour pin bar that we discussed yesterday failed today, it’s obvious that this pair is currently in the middle of a big retrace lower. We could see it test the 50% retrace of this last run higher before the longer-term uptrend resumes.
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 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.