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EURUSD – Euro/dollar starts off new year on a strong note
Last week’s price action in the EURUSD confirms our recent views of looking to buy this market on weakness. Notice, price easily closed up through recent swing highs above 1.1960 following a pin bar signal that formed down near 1.1860 key support. We are looking to buy pull backs to support this week with a price action signal on the 1 hour, 4 hour or daily chart time frame to confirm our long entry. We remain bullish whilst prices stay above the key support down near 1.1715 – 1.1670 area.
GBPUSD – Sterling/dollar pushes higher after bouncing at key support level
The GBPUSD has recently undergone an upward swing after previously pulling back to re-test key support at 1.3300 and consolidating there for several days. Notice the strong upward surge last week from that 1.3300 level; we had been looking to buy around that level as we discussed in our recent commentaries. This support level also is what I would consider a pin bar event zone (click link to learn more), so it’s clearly a strong level of defense for bulls. We will be looking to get long the GBPUSD this week on any pull backs / weakness whilst price is trading above 1.3300.
Crude Oil – Crude Oil uptrend continues, looking to buy pullbacks
Crude Oil has been in a strong uptrend in headed into the start of this year and we see no evidence that the trend is slowing down just yet. Traders have made money staying with this bullish momentum and as we have called for months now, we are looking to buy on weakness. Look to buy the dips or pull backs to support / value areas this week. The main support zone to look to get long from this week is down between 58.50 – 57.50 area, if price pulls back to that zone watch for 1 hour, 4 hour or daily chart time frame signals to buy.
AUDUSD – Aussie/dollar sees resurgence of buyers
In the last few weeks of 2017, the AUDUSD underwent a major short-term trend change from down to up as we can see in the chart below by price bouncing up from 0.7500 and reclaiming 0.7640 – 0.7700 area. We now see 0.7640 – 0.7700 as the new key support region to watch in the coming days and weeks. We will be looking for long entries whilst price holds above this support area. Traders can watch for buy signals this week on the 4 hour or daily chart on any weakness as this chart suggests that we be in the midst of an extended upside move back up to re-test the old highs near 0.8120.
Gold – Gold recovers, looking to push higher
Gold has witnessed a huge recovery after selling off a few weeks ago. Lower prices have been rejected convincingly and the monthly chart shows a massive pin bar reversal buy signal. Note, price had made a false break of 1240.00 area and then quickly snapped back and charged higher, this could lead to dramatic short-covering in the weeks ahead as those traders who bet against Gold will need to buy to cover short positions. Watch for pullbacks to get long between 1275-1296 support zone in the days ahead.
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