NEW YORK (TheStreet) -- Here are the set-ups for this week in foreign exchange trading.
EURUSD -- Euro/dollar falls after sell signals
The EURUSD has fallen lower over the last couple of weeks following a false break of resistance up near 1.1435. We discussed an inside bar sell signal on the daily chart last week and a four-hour chart pin bar sell signal in our members area, both of which have come off as expected so far. We see the potential for more downward movement this week as key support is not seen until down near the 1.0850-to-1.0800 area. Traders not already short can look to get short on a rotation higher this week while the price is under 1.1435, ideally on a price action sell signal.
GBPUSD - Sterling/dollar bears in control
The GBPUSD has weakened extensively over the last two weeks following a false break of resistance up near 1.5700. We are looking to sell this market on a retrace higher this week, to get short and trading in-line with the bearish momentum. Traders can look for sell signals up near 1.5330-to-1.5420 area.
USDJPY - Dollar/yen rotates lower after bullish pin bar
Last week, the USDJPY retraced down to the 50% level of the long-tailed bullish pin bar that we discussed recently. We can still watch for a daily or four-hour buy signal this week near current levels and down near 118.40 support. However, if price starts closing under that 118.40 level it would be a more bearish scenario that could lead to a re-test of support down near 116.00.
Gold - Spot Gold falls after fakey signal
The spot Gold market rotated lower last week after a bearish fakey setup formed showing rejection of resistance up near 1145.00, as we discussed earlier last week in our members commentary. We see potential for price to lose more ground this week and potentially re-test 1105.00 or lower. Traders not already short can look out for more price action sell signals whilst price is contained under 1150.00.