EUR/USD – bears in control
A strong downtrend remains intact in the EUR/USD and we are looking to sell, which necessitates trading in line with that trend.
It is important to notice the large bearish weekly pin bar on the weekly chart below – this pin remains activated and is a reflection of the stranglehold bears have on this pair right now.
Moreover, the pair’s price is likely headed down to parity (1.00) and traders can look to use pockets of strength to get short. It is worth noticing the containment zone between 1.0530 – 1.0670, as we watch for price action sell signals near that zone or the 8 and 21 day EMA layer.
AUD/USD – sell-off from key resistance
The AUD/USD recently rallied up to a key 0.7505 resistance, a level that we have discussed extensively. After a final attempt to crack 0.7505, the price falsely broke and subsequently collapsed lower last week. Bears are clearly in control of this pair right now and we remain firmly bearish on this market and are looking to sell. Traders can watch for any strength this week for selling opportunities whilst price is under 0.7505 resistance.
Oil – pulling back toward key support level
The oil market is currently trending higher and as we can see below, the price is remaining buoyant above the previous mentioned support at 49.30. We saw a price test the recent highs at $52.00 and move higher before retracing lower last week.
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Subsequently, the price is now consolidating just above that $49.30 support before its next move. From here, we would ideally wait for a clean price action buy signal before re-committing to longs, or more experienced traders of crude might like to play longs intraday whilst price is still supported at or above the 49.30 vicinity. Look to buy on weakness whilst trend is intact.
S&P500 – uptrend set to continue
The S&P500 has been trending higher for weeks now, as we have discussed in our recent commentaries. The uptrend remains intact with price strongly bid after breaking up through 2212 recently. Last week, we saw an inside bar setup indicating a move is imminent.
We might see a false break lower followed by a strong recovery (fakey; inside bar false break) which is something to watch for early this week. Alternatively, we will watch for a subsequent price action buy signal on any pullback in the market.
We expect prices to rotate back towards recent highs of core near-term support at 2212.
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.