GBPUSD – Sterling/dollar remains above key support level
The GBPUSD has been in a trading range in recent months, between 1.2100 and 1.2760 area. The area we referred to last week, near 1.2400 – 1.2435, is still relevant and critical this week. There was an inside bar breakout near that 1.2400 level; this is the ‘line in the sand’ for buyers; if we hold there, we could see prices move back up to the top of the range near 1.2700 area. However, we expect this pair to be somewhat volatile this week and undergo potentially large swings. We favor the upside here, but if price closes under that 1.2400 level it would open the door for lower prices.
USDJPY – Dollar/yen sitting at key support level, will it fall?
The USDJPY downtrend we have seen recently remains intact. Price is sitting atop a key support level near 112.50 and threatening to break under it. We can see short-term resistance up near 113.80 and while prices remain below that we can look to sell. If prices break under 112.50 it’s safe to assume they will drop further in the near-term, down to the next major support around 110.90 area.
AUDUSD – Aussie/dollar bullish momentum continues but resistance approaches
Price continued moving higher last week in the AUDUSD after breaking up from an inside bar pattern, taking out the key level at 0.7606 with ease. The lows from last week, down near 0.7520 – 0.7540 are important right now because buyers have control whilst we stay above those lows. Price could easily move up into key resistance overhead near 0.7735 before experiencing any serious selling. This week, traders could look to buy from down near 0.7520-40 support and look to sell from 0.7735-0.7800 region.
Gold – Gold could breakout this week
Over the last two weeks, Gold has found a bottom down near $1180.00 and now prices are trying to break above $1220.00 key resistance. Price should remain firm and we could see more upward movement this week, to potentially test $1250.00 or even $1300.00 in coming weeks. This market looks to have enough upward momentum to move $50 to $100 higher in a short period of time. Whilst prices remain above recent lows at $1180.00, traders can look to buy on any dips lower if possible this week.
S&P500 – S&P500 continues its upward track
The S&P500 pushed higher late last week as the entrenched uptrend continued. We can see prices are remaining buoyant here up near the all-time highs and we see no end in sight for this uptrend. Traders can look to buy if prices retrace lower in the coming days. Watch support down near 2227.00 as the key level this week; whilst prices are above that level we are looking to be buyers.
SPI200 – Australian stock looking to bounce higher from support
The SPI200 has pulled back in recent weeks, following a strong trend higher. However, we see this as a retrace in the context of the overall uptrend this market has been in for months now. We see a potential buying opportunity this week, at the prior week’s lows, around 5555. That 5555 level remains the line in the sand for buyers; above this level and the market can move higher, to the overhead recent resistance at 5666 area.
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.