This Week’s Trade Ideas: EUR/USD, GBP/USD, S&P500 and Gold

EUR/USD – euro/dollar still holding under overhead resistance

Over the last three weeks, the EUR/USD has essentially been consolidating, moving sideways following the large sell-off we saw after the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term results came out. Last week, price made a false breakout above 1.1130 resistance, the second one in the last two weeks. These false-breaks, combined with the preceding sell-off, make us bearish biased on the EUR/USD this week. However, given the recent choppiness on this chart, we will wait for an obvious 4 hour or daily chart price action signal to form, ideally on some near-term strength (upward movement), before selling. We remain bearish this week whilst prices hold below 1.1130 on a closing basis.

GBP/USD – sterling/dollar looking weak after retrace higher

Last week in the GBP/USD, price retraced higher following the dramatic sell-off we saw in the preceding weeks that was initiated in the wake of the Brexit. Price moved up and hit resistance near 1.3500 before reversing lower on Friday, forming a bearish tailed reversal bar. Price looks to be firmly contained under that resistance now and we are looking to get short (sell) this week on any near-term strength whilst under 1.3500 – 1.3530.

S&P500 – S&P surging higher

The S&P500 broke up to new all-time highs last week as the uptrend continued. You will notice a pin bar buy signal that formed back on July 6th, and since then we can see that price has pushed higher. This week, we will continue looking to buy on pullbacks to support. We see near-term support down at the 2120 – 2105 area and that would be a good area to look to buy from, and we remain bullish above 2065 – 2040 key support zone.

Gold – looking to buy gold on a pullback

Gold pulled back to the downside last week, but as we can see in the chart below, the uptrend is intact. We will watch closely for price action buy signals this week at 1305 support and we remain bullish biased on this market whilst prices are above 1250 key support.

This article was written byNial 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