Indices, Commodities and Forex weekly 10/30/2016
This is free Inter-market weekly report of price action analysis in three majors asset classes Forex, Commodities, Indices. It is prepared to help you recognize certain market correlations between this asset classes so you can position better your trades.
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INDICES
S&P 500 USA Stock market Index
S&P500 is in an uptrend and according to Pitchfork channel move into 2300 is not excluded. We are waiting for a break of 2200. Long term trend will be changed only on a break of 200 SMA 2057 level. However the breaking of a Pitchfork uptrend lower channel line from February makes this as a correction beginning. Break below 2057 would lead to a 1910-1950 zone. No change in our view 2057 important for the downside, while 2150 is important for the upside
DAX German Stock market Index
DAX is rejected from 10790 strong resistance for the upside continuation. Range 10250 to 10790 is still holding and we could face a fall in DAX to lower range zone specially if the EURUSD bounce continue.
XAUUSD – GOLD
Gold is testing resistance for the upside around 200 SMA weekly 1289 level. Break above this level and follow through is required for the medium term uptrend continuation after the pull back into 1200-1230 support zone.
EURUSD
EURUSD strong bounce from historically verified support and bullish engulfing candle are calling for a bounce to a 1.1100 at least. Continuation downside only in case of a 1.0830 level break.
USDJPY
USDJPY reached strong upside resistance zone 105.500-106. Rejection from this zone could lead to a test of broadening wedge lower level 103.500. This week we have both FED and BOJ meetings and NFP report so it is expected that pair will be more volatile.
GBPUSD
GBPUSD had a flash crash with a 400 pips move in under one minute leaving a huge pin bar candle below important resistance 1.2780 level. Now the pair will need to consolidate and we don’t expect a continuation of an downtrend concerning 600 pips flash crash candle. Staying aside. This is a school example how it is hard to trade against the prevailing trend which is downtrend here and why is it so good to trade in trend direction. The pair has retested almost 70% of the last weekly candle wick and we could see a bounce from here just for a little correction although trend is strong and trading on a long side is not recommended. We don’t have new lows.
AUDUSD
AUDUSD on a weekly chart is clearly out of the strong long term downtrend by breaking and staying above 100 SMA (red line) 0.7541 level. Now we need a hold of the 0.7500-0.7540 zone and a break and close above 0.7714 level. We need to see a break and close above 0.7710 for any directional trade.
