EUR/USD – euro/dollar weakens, closes under 1.1100
After a dramatic sell-off from 1.1420 key resistance area following the Brexit vote a couple weeks back, the EUR/USD has since consolidated and moved sideways to slightly lower near the key horizontal level at 1.1100. Last week, price struggled to peek above 1.1100 and ended the week subdued, below that important level. Notice that a false break /fakey formed on Friday which could lead to further downside this week. We remain bearish (downward biased) this week whilst prices stay contained under 1.1100 – 1.1185 near-term resistance and will be looking for intra-day and daily chart selling opportunities.
GBP/USD – sterling/dollar floundering near last week’s lows
The GBP/USD has been in near free-fall mode since selling off from 1.4740 key resistance area in the wake of the Brexit results. Last week, prices fell further and consolidated into the week’s close, forming an inside bar price action pattern which typically signifies that a potential breakout with the trend is coming. If price breaks down from inside bar pattern, we could see further downside movement in this pair. Alternatively, if price breaks higher, we would be watching for a sell signal closer up near 1.3585 resistance.
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S&P500 – S&P500 uptrend continues
The S&P500 continued its bullish run higher late last week as it powered higher following a strong price action reversal pattern on Wednesday. Price is nearing key long-term resistance / all-time highs so we will see how it reacts up here first, before making any further decisions. However, the trend is up so our overall approach right now is to look to buy on pullbacks to support levels. We remain bullish on the S&P500 this week whilst above 2060.00 – 2040.00 key support zone.
Gold – gold bulls remain in control
Gold has been in a very strong uptrend as we have been discussing in our recent commentaries. We are still very bullish on this market and as we can see in the chart below, last Friday price recouped intra-day losses after falling down into the 8 / 21 day EMA (exponential moving average) layer and reversing to end the day higher, forming a large bullish pin bar reversal signal. We are looking to be buyers of gold this week to get long, in line with the overall uptrend.
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