As we have been discussing in our recent members’ daily market commentaries, a strong downtrend remains intact in the EURUSD and we are looking to sell, to trade in-line with that trend. Notice the large bearish weekly pin bar on the weekly chart below, this pin remains activated and is a reflection of the stranglehold bears have on this pair right now. Price is likely headed down to parity (1.00) and traders can look to use pockets of strength to get short. Notice the containment zone between 1.0530 – 1.0670, watch for price action sell signals near that zone or the 8 and 21 day EMA layer.
AUDUSD – Aussie/dollar sells-off from key resistance
In recent commentaries, we discussed that the AUDUSD could sell-off if it stayed contained under 0.7505 key resistance level. After a final attempt to crack 0.7505, price false-broke and has subsequently collapsed lower late last week. Bears are clearly in control of this pair right now and we remain firmly bearish on this market and looking to sell. Traders can watch for any strength this week for selling opportunities whilst price is under 0.7505 resistance.
GBPUSD – Sterling/dollar nearing key support
Price weakened last week in the GBPUSD, but it’s still above 1.2334 key near-term support. We see that level as the line in the sand for bulls this week and we will wait to see what price action develops around that key support this week. We will update you guys as anything new develops in this pair.
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