AUD/USD - Aussie/dollar continues to lose ground
The AUD/USD has been in a sustained downtrend for about a month now and we see no signs of that slowing down yet. The critical overhead level to watch for this week is 0.7250. That level contained price last week and we see the potential for more downside movement this week if price stays under it. We see the potential for this pair to re-test 0.7040 area in the coming days if this downward momentum continues.
S&P500 - S&P500 continues its ascent
In our discussions of the S&P500 over the last few weeks, we have been saying that if price can hold above 2030.00 the uptrend would remain intact and price should push higher. We can see that price did continue higher last week and pushed up through resistance at 2070.00 - 2080.00 on what was very strong buying activity. This week, we see support at 2070.00 - 2080.00 area and for traders looking to jump a board the current swing higher, you can watch for short-term pullbacks into that support. We see the potential for price to push up into 2130.00 area.
GOLD - looking to buy gold from key support levels
Whilst gold has gone through a downward retrace in recent weeks, the longer-term trend is still up and so we want to look to trade in line with that. From a technical view, gold is approaching a key area of support down between the $1200.00 - $1190.00 area and price could undergo a strong bounce higher from there. Traders can watch that support area closely for buying opportunities in the coming days.
Oil - crude oil approaching key long-term levels
Despite the aggressive recovery to the upside in crude oil in recent months, the long-term downtrend cannot be ignored. We now find price approaching some major key long-term levels around $50 to $51, and again circa $55. Traders should watch out for a major ‘blow off’ (exhaustion) in prices and look for a bearish reversal signal at some point in the coming days / weeks ahead. Any such opportunity could produce a $3 to $5 move lower as prices reverse off these major levels and take breather. We would also look at being a buyer at some point, but the nearest support worth considering to go long is well below at $42.50 and isn’t relevant at this moment in time.
This article was written byNial Fuller. Nial is a highly regarded professional trader and author. He is the founder of Learn To Trade The Market, the worlds foremost trading education resource. To learn more, visit www.LearnToTradeTheMarket.com
