EURGBP - Sell the rallies under resistance
As discussed in our recent commentaries, the EURGBP has been trending lower after topping out in October 2016. In the chart below, we can see two big reversal areas, notated as 'event area's, which lead to a sharp decline in prices, and a change in trend direction. The market has since experienced a vacuum back up to test these areas recently. There is now a confluence of factors that have come together to support our current bearish view on this market. We can see a band of obvious strong resistance starting up near 0.8850, at the previous event areas, which are now containing the market, and an approximate 50% retrace of the initial swing lower. It all depends on the line in the sand at 0.8850 for sellers; if price is below that containment level, we expect more downside movement. Traders can look to be sell on strength whilst under that 0.8850 level, and we would hold short positions until a strong break or close back above 0.8850. To the downside, targets are near 0.8340 or even lower potentially.
EURUSD - Sell at overhead resistance
The EUR/USD has moved moderately higher in recent weeks, within the overall downtrend structure. Price broke up above 1.0670 key resistance last Tuesday and ended the week just above that level. If prices remain buoyant above 1.0670 we will likely see some more upside movement before 1.0875 resistance comes into play. Savvy traders could look for buying opportunities this week on weakness, targeting 1.0875 resistance. If price moves up to that 1.0875 level we would look to be sellers there.
Oil - Buy the dips above support with signal
The Crude Oil market continues to look strong, something we have been saying for weeks now. Two recent bearish pin bars have not had any impact on prices, therefore a break above those pins could activate higher prices. Crude Oil is bullish above 49.30 and 50.80 and we remain opportunistic buyers until there’s a convincing close below 49.30 key support level.
Nial Fuller is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 17,000+ students since 2008. Checkout Nial’s Blog - Learn To Trade The Market.
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