EURUSD – Euro/dollar at key resistance level
The EURUSD is still in a downtrend overall, however, over the last few weeks price has made a strong push to the upside and is now trading just below 1.0670 key resistance. Notice the bullish pin bar reversal that formed last Wednesday; if price can break above that key resistance at 1.0670, we could see it move up into 1.0875 area. Buying this pair right now is certainly a higher risk play, as it's against the trend, but it's worth considering this week given the recent bullish surge (upward push). However, given the long-term downtrend in place on this pair, we would also consider selling up near that 1.0875 key resistance level or slightly below on a price action signal.
GBPUSD – Sterling/dollar bearish trend continues, but price consolidating
Last week, we saw the GBPUSD consolidate, basically going nowhere as it trades between 1.2335 and 1.2100. There is still a downtrend in place in this pair, and we prefer to trade with the trend, however it's worth noting that price is testing a recent support near 1.2100. Should price break under that support, we would be actively looking for sell signals, but if price reaches support near 1.1820, we could consider getting long if a strong buy signal forms near there.
AUDUSD – Aussie/dollar at key resistance, can it continue higher?
In the AUDUSD, the ‘line in the sand’ for sellers right now is 0.7505-0.7519 area. This resistance area could attract sellers this week, however, it’s important to note there is some strong bullish momentum behind the current leg higher and there is likely to be a ton of stop-loss orders above 0.7519, so we could see a temporary short-covering rally and possibly a 'blow-off' move to the upside, before prices reverse. We will be on the look-out for a sell signal as the market enters into these strong resistance zones (between 0.7519 – 0.7735).
Gold – Gold continues to move higher from key support level
After the Gold market held the key support at 1130.00 – 1140.00 that we have discussed for weeks in our recent commentaries, it has continued to build a base and trend higher. If price can remain above that support zone, we still see potential for upside into 1240.00 resistance. Traders could consider buying on weakness or on a clean buy signal this week.
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