This article was written by Nial Fuller. Nial is a highly regarded professional trader and author. He is the founder of Learn To Trade The Market, the worlds foremost trading education resource.
GBPUSD – Sterling/dollar holding below key resistance
The GBPUSD has been meandering sideways over the last six weeks, whilst holding below a key overhead resistance level near 1.3500. We can see in the daily chart below, that price fell lower late last week as it neared the key resistance area up near 1.3520 – 1.3400. We will continue to look to be sellers on any rallies (strength) this week whilst price is contained under resistance at 1.3520. We can see a clear resistance zone between 1.3375 – 1.3520 that we can look to sell in or near, ideally on a 1 hour, 4 hour or daily chart price action signal.
AUDUSD – Aussie/dollar trapped in trading range, potential selling opportunity
The AUDUSD moved higher last week after bouncing up from 0.7420 support the previous week. Price has now hit a key overhead resistance level and looks to be range-bound between 0.7420 and 0.7670. We can see on Friday price hit key resistance up near 0.7670 and pulled back into the day’s close, indicating a potential rotation lower could be in the cards soon. This week, we will watch 0.7669 – 0.7700 core containment area for potential selling opportunities as this area previously contained prices as we mentioned. We prefer to wait for a clean price action sell signal before entering. We could see price rotate to the lower side of the range, to 0.7420 key support area if it stays contained under that resistance zone.
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USDJPY – Dollar/yen remains subdued after sell-off
The USDJPY downtrend continues to push prices lower and we can see in the daily chart below that all recent rallies (moves higher) have been met with intense selling pressure. If price moves up to resistance near 103.60 – 103.90, we will be watching closely for price action sell signals to rejoin the downtrend from that value / resistance area.
GOLD – Potential buying opportunity setting up in Gold
We remain bullish (upward biased) on Gold as we have been for months now, in-line with the long-term uptrend in this market. We could see a buying opportunity on Gold early this week to enter down near 1320.00 – 1310.00 near-term support either on a blind entry (entry without a price action signal as confirmation) or on a price action buy signal on the 1 hour, 4 hour or daily chart time frame.
This article was written by Nial Fuller. Nial is a highly regarded professional trader and author. He is the founder of Learn To Trade The Market, the worlds foremost trading education resource. To learn more, visit www.LearnToTradeTheMarket.com