NEW YORK ( TheStreet) -- EURUSD -- Euro/dollar bearish trend intact
The EURUSD finally found some buying interest on Friday, as the market rallied modestly higher after hitting a low of 1.3366 last Wednesday.
The bearish trend is still intact in this market, and so we still prefer to wait for sell signals after a retrace higher. If this market can rally back up to resistance near 1.3480-1.3510, we will watch that area closely for a price action sell signal to rejoin the downtrend.
GBPUSD -- Sterling/dollar continues falling lower
The recent bearish momentum in the GBPUSD accelerated last week, as the market lost significant ground late in the week. Traders can look for price action selling opportunities if this market rallies back up to resistance near 1.7000 this week. Otherwise, if it continues to fall and hits the key support level down near 1.6690, we will watch for buying opportunities from that key level, to trade back up toward resistance levels.
AUDUSD -- Aussie/dollar weakens, still within trading range
Last week, AUDUSD broke and closed below near-term support at 0.9320 that had been holding it for some time recently. If price keeps falling lower this week, we see key support coming in down near 0.9200, the bottom of the trading range between 0.9450- 0.9200 (a trading range is an area of price consolidation where price oscillates between an obvious support and resistance level).
Traders can keep a look out for buying opportunities near 0.9200 key support if the market tests that level this week.
NZDUSD -- Kiwi/dollar consolidating just above key support
The NZDUSD consolidated late last week as the recent selloff the market was in slowed. Bearish momentum has clearly been in control of this market recently, but given that we are approaching key support near 0.8400, we could see the market retrace higher soon.
Traders can either watch for a price action buying opportunity from 0.8400 key support or just above or wait for a price action sell signal to rejoin the bearish momentum after a retrace to resistance.
S&P500 -- U.S. stock indexes sell off
The S&P 500 was in a free fall last Thursday and continued losing ground on Friday.
At this point, we have to consider that the bias might be changing, at least for the short term. Traders can look to play both sides of the market by watching for price action buy signals from key support and then looking for sell signals as the market approaches resistance levels again.
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