Note: We Use ‘New York Close Charts’ – Get Our Preferred Charts & Trading Platform Here
EURUSD – Euro/dollar pushes higher as bulls remain in control
After an impressive run higher in recent weeks, the EURUSD spend the later part of last week consolidating before it makes its next move. Given the strong bullish momentum of late, we are looking to join this market on the long side. This week, we can watch for downside pullbacks (weakness) to be a buyer on a price action signal, ideally near the support at 1.1950. However, we remain very bullish on this market whilst above 1.1860 support, which is were this recent up-swing really fired off from after a pin bar signal formed there a couple weeks back. Another interesting note is the monthly chart has formed a large bullish pin bar for the month of December, indicating more upside to come for January, which fits nicely with our above analysis and call to buy on pullbacks.
GBPUSD – Sterling/dollar setting up for another push higher
As per our recent GBPUSD commentaries, this market is in an uptrend and has recently bounced higher after testing 1.3300 support. The uptrend looks very healthy and has plenty of room to run to the upside, so we are looking to buy again this week. We can watch for pullbacks or weakness to get long on a 1 hour, 4 hour or daily chart buy signal near or above 1.3300 key support. Notice that key support is also an event area as a large pin bar signal formed there in late November, this adds extra weight or confluence to the level. We also are watching the inside bar pattern that formed as last week closed out; this could lead to a breakout early this week and continuation of the uptrend. Stay tuned to our daily members market commentary for updates on the GBPUSD as the price action unfolds.
USDJPY – Dollar/yen floundering above key support level
The USDJPY rebounded from 112.00 key support again last week after pulling back to it, as we discussed in our last commentary. However, there was limited follow-through to the upside and so we are not extremely bullish on this pair anymore. The bias has shifted to more of a sideways view, but we remain happy to be a buyer at 112.00 until that level fails to hold price. Traders can continue to watch for price action buy signals near or at 112.00 to get long until price closes below that level on the daily chart time frame.
Gold – Huge bullish monthly reversal will push Gold higher
As we discussed in our January 1st Gold commentary, a bullish pin bar reversal formed in December on the monthly chart, and we can see the strong upside follow-through on the daily chart below. Price has reconnected back above all recent key resistance levels and this is all very bullish. We could very well see price move up through 1360.00 or higher in the mid-term, it’s probably going to catch a lot of people who are short. We remain bullish on this market and looking to buy it, note that price bounced at 1305.00 intra-day last Thursday, indicating that any pullbacks are potential buying opportunities right now. Watch for further weakness this week to get long on a 1 hour, 4 hour or daily chart buy signal ideally near or between 1305.00 – 1290.00 support zone.
Oil – Crude Oil uptrend continues
We remain bullish and looking to buy Crude Oil as we can see the uptrend is still very strong. We have been looking to buy this market on pullbacks for months now and traders who have stayed with the long side have done very well. We are watching 58.50 – 55.90 as the key near-term value / support area to look to buy from on any further weakness this week.
China50 – Chinese Stock Index poised to keep trending higher
The China50 Stock Index has recently broken up and out from a consolidation range within the context of a long-term uptrend, as we can see below. We are bullish on this market and are looking to buy it on a pullback this week. Traders can watch for price to pull back to 13340 – 13450 zone and watch for price action confirmation signals or consider a blind entry there to get long, in-line with the uptrend. Stay tuned to our members discussion forum and daily trade setups newsletter for on-going updates on this and other markets throughout the week.
Want More Trade Setups Ideas & Analysis? In the members’ daily trade setups newsletter, we discuss potential trade setups and provide detailed chart analysis on Currency Pairs, Commodities, Stock Indices and more. For more information click here.