Trade Ideas & Chart Analysis For The Week Ahead, May 2nd to 6th 2016
Note: We Use ‘New York Close Charts’ – Get Our Preferred Charts & Trading Platform Here
Trade Setups / Chart in Focus:
EURUSD –Euro/dollar bulls in control again
In our previous comments on the EURUSD, we discussed that price needed to close above 1.1400 to invalidate the bearish view we had at that time. We can see that happened last week with price surging higher on Friday to end well above that level and above the high of the bearish pin bar from April 21st. Now that we have moved back through 1.1340-1.1375 resistance, the bias turns quite bullish once again. Our view this week is to buy EURUSD on any short-term weakness near or above support at 1.1340 – 75. The current swing higher is targeting 1.1700 key resistance. Our long (bullish) view remains until a convincing close below 1.1214 (last week’s low). To stay updated on any potential buy signals that may form in this pair this week on any short-term weakness, refer to our members trade setups newsletter.
GBPUSD – Sterling/dollar strengthens
The GBPUSD strengthened last week again, moving up to test resistance near 1.4668 into the week’s close. We may see some retrace to the downside early this week from that resistance, but we have been looking to buy this pair in recent weeks, in-line with the recent bullish momentum and we will continue to do so in the coming days. Should price retrace to the downside, we will watch for price action signals on the 1 hour, 4 hour or daily chart time frame to buy near or just above support at 1.4300 – 1.4350. Check our daily price action trade setups newsletter this week for potential buying opportunities in this pair as the price action unfolds.
AUDUSD – Aussie/dollar weakens, key support just below
The AUDUSD price action was bearish last week, but the market is still hanging in there above 0.7490 key support. However, we aren’t convinced it will remain buoyant until we see some bullish price action at that 0.7490 level. We will avoid the buy side until a price action signal develops at 0.7490 this week on the intraday or daily charts. Other pairs look stronger against the USD right now and traders may be better rewarded looking elsewhere for opportunities this week, at least until AUDUSD tests 0.7490 major support and gives us more technical clues. We will update members in the members area market commentaries if we see any new developments near that 0.7490 level this week.
S&P500 – S&P500 retraces but uptrend intact
The S&P500 retraced lower late last week but we can see the overall uptrend is still intact. We remain of the view this minor correction presents a buying opportunity and we will consider longs close to or just above 2030.00 area and only if we see a price action confirmation signal there. The bullish bias remains on the S&P until we get a convincing close below 2000. Refer to our members area commentary for updates on this pair throughout the week.
Gold – Gold bullish run continues
Gold obviously broke out from its recent consolidation range last week, surging aggressively higher last Thursday and Friday and closing well above resistance levels at 1250 – 60 as well as previous high at 1282. This week, any weakness is seen as a potential buying opportunity and we can watch for 1 hour, 4 hour or daily chart buy signals should price temporarily pullback. We will remain aggressively bullish whilst above 1230 – 1208 key support zone and will watch closely for buying opportunities near 1250 – 60 area.
Want More Trade Ideas? – Get daily trade ideas and analysis on more forex pairs, stock indices and commodities, check out Nial Fuller’s Daily Trading Newsletter.