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EURUSD – Euro/dollar continues to trend higher
The EURUSD remains in a firm uptrend and as we can see below, price surged higher last week after bouncing from 1.1120 support the previous week. Price easily broke out above the previous recent highs at 1.1290 last week, a level that now becomes near-term support. The overall picture shows that price appears to be heading up towards the long-term resistance at 1.1500 – 1.1600 zone. Given this bullish scenario, traders can look to be buyers this week on any weakness / pullbacks in price.
USDJPY – Dollar/yen remains strong after push higher
The USDJPY has remained strong after pushing higher following the bullish reversal off 109.00 long-term support several weeks back. We can see sustained upward momentum in this market as price broke through into the high 112.90 area before consolidating. The support this week is between 111.00 and 111.80 and we can look to be buyers on any weakness down around that area. If price closes under 111.00 however, there is downside risk in that scenario. But if the current uptrend remains intact, there is upside potential with targets at 112.90 and 114.40.
OIL – Crude Oil remains in overall downtrend
Last week, Crude Oil prices put on an impressive show of strength, recovering aggressively from recent lows down near $42.00. However, price remains in an overall downtrend and there is some major overhead resistance coming in up near $46.80 – $47.20 that could work to contain prices in the near future. Traders looking to trade Crude Oil can watch for a clear price action sell signal on the 4 hour or daily charts up near $47.20 to try and rejoin this down-trending market.
S&P500 – S&P500 stays contained under resistance
We saw the S&P500 complete a full retracement down to test the support area near 2400.00 last week. We can see some intense selling took place last week near that 2440.00 resistance area, which is still below the highs of the recent pin bar reversal signal on the daily chart. This week, there are two ways to trade the chart: We could look to sell blindly (without a price action sell signal) around the 2440-45 area and target a move back into 2400 – 2390 area. Alternatively, if we see a buy signal from 2390-2400 level, we could consider buying, targeting a move back into 2445.
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.