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GBPUSD – Sterling/dollar could push higher this week following pin bar signal
In recent weeks, the GBPUSD has been stuck in a trading range between 1.2100 – 1.2700. More recently, this pair has undergone a bullish surge higher and then pulled back to the downside, to a support level near 1.2400, and formed a pin bar reversal / buy signal there last week. Following the bullish pin bar reversal / buy signal which formed last week and that we discussed in our February 7th commentary, the GBPUSD moved slightly higher. Our view hasn’t changed; we can still look to be buyers whilst prices are above key support at 1.2400. However, a decisive close under 1.2400 – 1.2350 would open the door for more downside movement in this pair.
EURUSD – Euro/dollar selling off from key resistance zone
The EURUSD is in an overall downtrend and it has recently began to fall lower again following a strong rally back up to a key resistance area near 1.0770 – 1.0875. Following a small bearish fakey with pin bar (a price action reversal pattern) that formed last week in the resistance zone between 1.0770 – 1.0875 area, the EURUSD fell modestly lower last week. The market ended last week right at the 1.0620 major support area, so there is a chance prices could bounce from here in the near-term. We see the potential for further declines in this pair whilst under the key resistance zone at 1.0770-1.0875. Traders can look to sell on strength (rallies) this week, ideally up near 1.0770 area on a price action signal.
AUDUSD – Aussie/dollar remains buoyant, but key resistance is nearby
The AUDUSD has been screaming higher since late December. Price consolidated last week, but did post a modest rally into Friday’s close. The support at the recent lows at 0.7520-40 is still significant in the short-term as the buyers continue to maintain control. Price can easily trade up into key long term resistance overhead near 0.7735-78 before experiencing any sell pressure. This week, traders could play longs (look to buy) from 0.7520-40 support and shorts (sell) from 0.7735-0.7778 resistance region.
Gold – Gold could test $1300.00 in the coming weeks
Recently, Gold prices have found a nice bottom again at $1180 area. Notice price pushed above 1220.00 resistance last week, a level we mentioned in the weekly commentary recently. Prices should remain buoyant and we could see further upside into $1250.00 this week and potentially $1300.00 in coming weeks. The market looks to have enough momentum to trade $50 to $100 higher in a short space of time towards $1300. Whilst above recent lows $1180.00, traders can look to buy weakness if and where possible this week.
S&P500 – S&P500 uptrend continues as buyers are in control
For the S&P500, price pushed higher again last week, in-line with the long-term uptrend in this market. Prices remain very buoyant here, near the all-time highs, with no end in sight for the uptrend. Traders can still look to buy short term price dips / pullbacks whilst prices remain above short-term key support near 2277.00.
SPI200 – Australian stock index uptrend continues
In our previous weekly market analysis, we called the SPI200 (Australian stock index) a long (buy) at support at prior week’s lows around 5555, not a bad trade for those who had the gut to fade (trade against most recent market direction) the sell-off and go long. Following a nice bullish tailed reversal bar (buy signal) at that 5555 level early last week, price has moved up and closed above 5666 resistance. We see more upside possible this week, into 5760 resistance. Traders can look to buy on pullbacks whilst price remains above 5555 major support.
This article was written by Nial Fuller, a highly regarded professional trader and author. He is the founder and CEO of Learn To Trade The Market.