EUR/USD – euro/dollar sells-off after quick surge higher
The EUR/USD lost significant ground last week after shooting dramatically higher in the wake of the US election results and then reversing course, ending the week sharply lower. Notice in the weekly chart below, price shot all the way up to key resistance near 1.1280 mid-week last week, before reversing and ending dramatically lower, indicating that bears are clearly in control. Price is now resting just above 1.0825 key support, but if it breaks under that level we will likely see the sell-off continue. We could look to get short (sell) this market on some strength followed by a 1 hr, 4 hr or daily chart sell signal this week. Resistance up near 1.1125 key resistance is the key level or line in the sand for bears.
GBP/USD – sterling/dollar looking strong
The GBP/USD has shown renewed strength in recent weeks following some bullish news out of the UK. The Sterling moved higher last week after rotating down to near 1.2340 support earlier in the week, indicating bulls are still in control here. We could see more upside movement with the next key resistance not until 1.2850. Traders can look to buy on weakness whilst above that 1.2340 level, targeting 1.2850 or slightly below.
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S&P500 – US stocks rally after volatile week
Upon looking at the daily S&P500 chart below, we can see the big bullish reversal that took place last Wednesday after the US election was settled. This huge bullish reversal indicates that smart money is pricing in a more optimistic future than what common investors and media outlets had predicted if Trump won. The logical play would be to use weakness to buy in the coming days and we could see a huge upside follow-through into the end of the year. Look for buying opportunities in the S&P500 between 2106.00 and 2035.00, and whilst price is above that 2035.00 level the bull market remains intact.
Gold – gold falls after US election
The spot gold market fell dramatically lower last week after briefly breaking above 1310.00 resistance and then reversing sharply into the week’s close. We could see more downside movement in the near-term and look to sell on a retrace whilst under 1300.00 area on a 1 hr, 4 hr or daily chart sell 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