EURUSD – Euro/dollar downtrend intact, watching for selling opportunity
The EURUSD downtrend remains intact, but last week we saw price retrace back to the upside and it’s now within a resistance zone between 1.0530 – 1.0670. Notice that price is still below the high of the pin bar sell signal that formed back on December 30th as well as resistance up near 1.0670. Whilst price is under that level, we remain bearish and looking for sell signals this week. We are waiting to see what unfolds here and we would prefer to see an obvious 1hr, 4hr or daily chart price action sell signal before selling.
GBPUSD – Sterling/dollar sell-off potentially setting up
The GBPUSD is currently trading near 1.2335; a level we have been watching and discussing in recent commentaries. After trading down through that level two weeks ago, price retraced back up to test it late last week, but as we can see by the false-break that occurred on Friday, bears are defending this level quite aggressively. We retain a bearish bias on this pair and would consider a short entry if a solid 1 hour, 4 hour or daily chart price action sell signal forms near current levels this week.
AUDUSD – Aussie/dollar rotates back up to resistance level
The AUDUSD remains in a downtrend overall, but did rotate higher last week, up to resistance near 0.7310. We wouldn’t be surprised to see price try to move up and re-test key resistance up near 0.7505. We still favor the short side in this pair and will wait for a clear price action sell signal to form near resistance levels before jumping back in.
NZDUSD – Kiwi/dollar makes false-breakout, potential downside movement in store
The NZDUSD reversed on Friday, erasing all gains from Thursday and making a false-break of resistance near 0.6980. The trend is down in this pair still and we see the reversal on Friday as a potential selling opportunity. Traders can watch for early strength this week to potentially get short and trade in-line with this downtrend as there’s plenty of room for prices to fall to the downside.