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EURUSD – Euro/dollar retraces back to support within uptrend
The EURUSD has been trending higher since about April, and last week we saw price retrace lower within that uptrend, back down to the 21 day exponential moving average. We can see that price has tested the horizontal short-term support level near 1.1837 on two separate occasions over the last few weeks, bouncing higher afterwards. The price action is indicating that momentum and trend are still clearly up and so we are looking for further retraces to support followed by buy signals to get long and trade in-line with the uptrend. We remain bullish (looking to buy) on this market whilst price remains above 1.1660 support.
GBPUSD – Sterling/dollar surges higher as buyers rush in
The GBPUSD exploded higher late last week as bullish momentum took price up and through 1.3265 key resistance with ease. The trend has been up in recent months and given last week’s price action and strong bullish statement we see no reason why that would end any time soon. As a result, we are continuing on with our recent views on this market of looking to buy it on any pull backs or retraces back to support areas. We can watch the 21 day exponential moving average as well as the previous breakout level at 1.3265 as a strong potential buy level this week should price rotate lower.
AUDUSD – Aussie/dollar uptrend intact, looking to buy
The AUDUSD pulled back last week as price rotated lower within the overall uptrend. We are watching for a buying opportunity again this week, ideally a little closer to 0.7870 – 0.7800 support zone. The upper limit of a large trading range price recently broke up and out of was seen at 0.7800, so that level is a strong support now and whilst above it we are looking to be buyers. We like to see a strong 1 hour, 4 hour or daily chart price action buy signal before initiating any buy positions this week, but if price reaches 0.7870 – 0.7800 we would also consider a blind buy entry (entry at a level without a signal) within that support zone.
GOLD – Gold retraces lower, waiting for buy signal
Gold retraced modestly to the downside last week after another leg higher the previous week in the strong uptrend it has been in for months now. This week, we are looking to buy down near $1300.00 – $1275.00 so that we can join the uptrend from value / support. Until price moves below the recent pin bar low / swing low seen in the chart below, our approach is to look to buy Gold. Price has a good chance of moving up to retest $1370.00 – $1400.00 area if it can hold above that $1275.00 support level.
S&P500 – S&P500 Stock Index moves to new highs as uptrend continues
The S&P500 U.S. Stock Index hit new highs after price broke above 2480.00 – 2488.00 resistance last week. This market continues to push higher and the uptrend is clearly intact, so we want to look to buy it on any weakness / pull backs to support in the coming days. This week, we are watching 2480 and the 21 day exponential moving average as strong potential buy levels if price rotates lower.
This article was written by Nial Fuller. Nial is a highly regarded professional trader and author. He is the founder and CEO of Learn To Trade The Market, the world’s foremost trading education resource.