EURUSD – Euro/dollar reverses at resistance, bears in control
The EURUSD continues to lose ground as the long-term downtrend is intact and active. Notice the strong rejection of higher prices last week as price retraced up to 1.0855 - 1.0900 key resistance and subsequently reversed, losing significant ground in the process. Looking at the weekly EURUSD chart, you can see a big bearish pin bar formed last week, reflecting the weakness in this pair right now. Traders can continue to look to sell whilst price is under that containment area at 1.0855 - 1.0900 by watching for strength to get short. Keep an eye on the 1 hour, 4 hour or daily charts for price action sell signals following any strength this week, to get short.
AUDUSD – Aussie/dollar could continue to fall whilst under 0.7505
The AUDUSD has retraced back up to resistance at 0.7505 following a reversal and sell-off from 0.7735 key resistance back in early November. We are still looking to trade in-line with that bearish trend and this recent rally to the upside may be represent a nice opportunity to do so. We can look to get short this week near current levels or closer to 0.7505 on any early strength. Whilst prices are held under 0.7505, we will retain our bearish bias.
Gold – Gold nearing key long-term support zone
Gold continued to lose fall lower last week as the overall downtrend remains intact. This market has dropped significantly in recent weeks and is now nearing weekly long-term support area between 1130.00 – 1140.00, so we wouldn’t want to sell near current prices. Instead, we would look to be opportunistic at that 1130.00 – 1140.00 area and keep an eye out for convincing price action buy signals on the 4 hour or daily chart to confirm a long entry.
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