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EURUSD – Euro/dollar uptrend intact, waiting for pull back to buy
Last week in the EURUSD, price pushed higher again, albeit with more subdued gains than the previous week. However, the trend is still up overall and as we have been discussing in recent commentaries we are looking to buy this market on pull backs to support. We are now watching 1.2335 near-term support, the 21 day ema (blue level) and down to 1.2090 area for price action buy signals on a rotation lower (pull back) this week. Stay tuned to our daily members trade setups commentary for ongoing updates on the EURUSD.
NZDUSD – Kiwi/dollar sells off after pin bar reversal signal
The NZDUSD formed a bearish pin bar reversal signal back on January 24th up near 0.7430 key long-term resistance, a potential sell signal as we highlighted in our members commentary that day. We can see that 0.7430 has since contained price below that long-term resistance and that price has sold-off last Friday after staying below the high of that January 24th pin bar. As a result, we are looking to sell short-term rallies this week until the market reclaims 0.7430 area. Should price sell-off deeper and move into support near 0.7050 – 0.7130 we could start looking for buying opportunities again, however that may be some time away. For this week, we remain bearish biased and looking to get short on any minor rallies whilst under 0.7430.
GBPUSD – Sterling/dollar setting up for pullback
The GBPUSD traded up near recent highs last week until Friday when it sold-off modestly lower. This market is holding its own and we see good potential for the recent uptrend to continue, an uptrend that has been in place basically since mid-2017. Thus, we remain bullish biased and our strategy of choice is to look for a 1-hour, 4-hour or daily chart time frame buy signal from value / support after a pull back. Our focus areas this week is last week’s lows near 1.3977 all the way down to 1.3655 support; watch for price action signals to get long from within or just above that zone.
S&P500 – S&P500 sells-off as volatility picks up
Last week the S&P500 U.S. stock index underwent a huge sell-off / liquidation of longs who bought near the top recently. Such a move is really not surprising given the magnitude of the run higher we have seen in this chart in recent months. We view this increased volatility as a potential to make money if we wait for the proper price action signals and use them properly. We see the next support at 2695.00 area and we will be looking for an even deeper pull back to take place followed by a clear price action signal to confirm a long entry. Monitor the 1-hour, 4-hour and daily chart closely as this market pulls back to support but be aware of the volatility and remember that wider stops are typically necessary in such an environment.
Gold – Gold working its way back towards support
Gold struggled last week up near long-term resistance at 1365.00 area (a resistance target we discussed back in our January 8th commentary), and we are a seeing a pull back begin on the daily chart below. We remain mildly bullish in the near-term and we could see the market move down to re-test support near 1295.00 – 1306.00 key support zone where we would be watching closely for price action buy signals to get long.
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