EUR/USD – euro/dollar reverses after brief retrace higher
In our previous EUR/USD discussion, we talked about looking to sell the pair on strength last week whilst under overhead resistance near 1.1340 – 1.1400. You will notice that on Friday a large reversal bar formed, showing that sellers had come back into the market.
This shows us again that bears (sellers) are controlling this pair and could push prices lower this week. Traders can look to sell this week on any early strength, targeting support below the 1.1045 area.
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AUD/USD – Aussie/dollar could lose more ground this week
As we discussed in our previous commentary on the AUD/USD, we are looking to sell it whilst under key resistance up near 0.7676. We can see in the chart below that price retraced to the upside late last week but backed off the highs Friday to form a bearish tailed bar / pin bar. As we have discussed looking to sell on strength recently, Friday’s price action could be a potential selling opportunity that could lead to lower prices this week, down to 0.7400 support area.
S&P500 – S&P500 bullish trend intact
The S&P500 is still in a long-term uptrend and as we can see in the chart below, it remained above 2150.00 near-term support last week, a level we have been talking about looking to buy from in recent commentaries. Our views have not changed on this market; we are still looking to be buyers on weakness, ideally with a price action signal as confirmation, but more aggressive traders may consider getting long at or close to 2150.00 or 2120.00 with or without a buy signal.
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