EURUSD – It will all depend on the 1.1535 technical support level this week.
Technical Chart Summary: Several weeks ago, price broke down below the 1.1535 level but quickly reversed higher, triggering a massive short covering rally. This has created a massive bullish fakey pattern + pin bar on the monthly chart, a very bullish sign.
Last week, the market has sold off from the pin bar + inside bar combo pattern that formed last Monday right at major resistance at 1.1820. We continue to favour buying weakness whilst price is firmly above 1.1535 support, targeting a move into 1.1750 to 1.1820. A break and close atop 1.1820 would be significant and open the door to a large move up.
Trade Forecast: Consider buying on any price weakness whilst price is above 1.1535 support, or wait for a price action buy signal to confirm an entry.
AUDUSD – Bearish after pin bar reversal sell signal on daily time-frame.
Technical Chart Summary: Long term down trend remains in tact with nearby resistance at 0.7470 and 0.7320. We expect the market to be contained under the 0.7470 major resistance.
A bearish long tailed pin bar reversal forms on the daily time frame below 0.7320 resistance last week which has taken prices lower again. We continue favour selling on any strength whilst prices remain below the high of the pin bars upper tail.
Trade Forecast: Consider selling short on any strength whilst price is contained below the 0.7320 to 0.7470 major resistance area or wait for another price action sell signal on 4 hour or daily chart to confirm an entry.
GOLD (Spot Gold) – Inside bar structure breaks down, opening the door for a move to $1150.
Technical Chart Summary: Down trend remains in tact with nearby resistance at $1205 – $1215 zone and $1237 level.
Price remains contained under $1205 to $1215, and we can see a bearish rejection of this area over the last few weeks. Whilst below this resistance, there is downside risk back towards $1150-60 area.
The inside bar pattern on the daily time frame we discussed previously has now broken down, activating lower prices and a potential test of $1150-60 support area.
Trade Forecast: Consider selling short whilst price is below the $1215 resistance area, targeting a move back into $1150-60 area. A move and close above $1215 voids any shorts.
CRUDE OIL (WTI Futures) – Looking to buy around the $70.30-$71.30 technical support area this week.
Technical Chart Summary: Price has broken out strongly last week, closing above the $71.30 major resistance level. This activates a long term move targeting the resistance at $74.93.
Last week we noted multiple inside bar pattern on daily chart time frame and suggested an upside break out was possible. On Friday we saw the market break higher from this inside bar structure aggressively, a bullish sign. We continue to favour buying on price dips whilst the support range at $70.30 to $71.30 holds.
Trade Forecast: Consider buying on any price weakness around the $70.30 to $71.30 support range, or wait for a price action buy signal above this support area on the daily time frame. Targeting a move into $74.93 and beyond.