Weekly Forex Market Preview by Nial Fuller – January 30th 2017

Nial Fuller forex trader education

EURUSD – Euro/dollar hits key resistance level, stalls

The EURUSD is in a long-term downtrend, but recently it has undergone a strong retracement higher. That retracement appears to have terminated last week after price ran into a resistance area starting near 1.0770 and going up to 1.0875. That area is currently containing price and if it continues to do so we could see the downtrend resume from near current levels. We saw consistent selling pressure near 1.0770 after price tested that level last week; as evidenced by a 4 hour bearish reversal (long upper tail) on Friday. We are looking to sell rallies (upward movement) this week whilst under that 1.0770 resistance level.

GBPUSD – Sterling/dollar moves higher but stuck in trading range

The GBPUSD has surged higher in recent weeks, following a false-break of 1.2100 key support level. Overall, this pair is still in a downtrend, but currently it is trapped in a trading range and moving higher. We still see this pair as mildly bullish whilst above the ‘line in the sane’ level at 1.2430. You will notice a recent inside bar (price action pattern) break higher that took place last week; the ara of the inside bar should act as support this week if we manage to re-test it (1.2430 area). This week, we are looking to potentially get long whilst prices remain above 1.2430, and we see upside potential back to 1.2765 previous high. However, we would avoid buying on a convincing close under 1.2430 level.

EURGBP – Euro/Sterling continues losing ground

The EURGBP has been trending lower after topping out in October 2016. Price fell significantly lower last week, in-line with our recent discussion and call to sell whilst under 0.8850. We still see the potential for this market to fall further, in-line with current bearish momentum. We can look to sell on any temporary strength (upside movement) and will retain our bearish bias until a close back above 0.8850 key resistance. Downside targets are near 0.8340 or potentially even lower.

S&P500 – S&P500 breaks out as uptrend continues

The S&P500 broke higher from a consolidation area last week, which led to new all-time highs. In the chart below, we can see a short squeeze; where those that kept betting against the trend were forced to close their losing sell positions, which fuels even more buying, continuing the uptrend. The current uptrend does not appear to have any end in sight and it would be incredibly risky to trade against this bullish (upward) move until there is strong evidence to suggest the short-term trend has ended. We remain bullish on this market as we have been for months now, and will continue to look to buy on pullbacks to support (weakness). We are now viewing 2275.00 as short-term support, followed by 2250.00 and 2225.00 as the next key support area; look to be a buyer at those areas this week on any weakness.

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.

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