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Last week EURUSD had a bullish reaction which makes sense because we’re very close to an almost 2 years low. We will do the same this week: we will wait for bullish reactions in order to open short positions, when we see the bearish indications. We need to pay special attention on Draghi’s speech in Frankfurt this Wednesday because it may cause a higher volatility reaction for the instrument.
GBPUSD had a strong bullish reaction after it reached the price of 1.2865. Last Tuesday and last Friday were extremely bullish, volatility started increasing again and our custom indicators show a trend reversal. Even though GBP is fundamentally undervalued and we would prefer long positions, due to the recently extreme volatile nature of British politics , we would stay out of long term positions.
USDJPY opened on Monday with a 50 pips gap lower than the close price of last Friday. A gap filling reaction is very possible and since the holidays for the Japanese market is over, we will follow the strong bearish trend. The price of 109.70 is a very good and achievable target for short sellers.
This Monday the instrument opened with a bullish movement after a free fall week. The bearish trend is still on and if there will be a support breakout of 0.8470, it’s very possible to see a price at the area of 0.83 .
The bearish breakout of 0.70 was very important for the instrument not only because there was a double bottom there but also because 0.70 is a strong psychological support. We have to go back to 2009 in order to see such price levels, if we exclude an unusual spike at the beginning of the year. We remain sellers. Tuesday news may be the necessary fuel for strong movements.
We had estimated the pair reaching the area of 77.50 with great success. AUDJPY opened with a big gap and after a normal gap filling which always possible, we will wait for short opportunities with target the area of 0.7650.
Monday’s gap changes all our technical and Machine Learning model based indications and estimations. SP500 is definitely bullish but we’ll wait for things to get normal before we open buy positions. Of course, we don’t forget that we’re close to records high but the market seems very strong. The fundamentals are there from a very strong US economy & an accommodating FED , but possible missteps from world’s leaders may give the chance to markets for a retracement. We will prefer to stay out of markets on Friday due to important US economy news (Consumer Price Index)
Market opened with a huge gap, 200 points below last Friday’s close price. Trend remains bullish but we must be very careful. Recent optimistic news from Eurozone may give a boost to DAX, assuming no heavy turbulence in the markets. We’ll wait and see, maybe 1-2 days, if we have a trend reversal or just a retracement.
Last Wednesday, FTSE100 fell 100 points and in combination with the other days’s performance, indicates that there’s an overall downtrend for the Index. The important news though is on Friday (Gross Domain Product). We estimate that the downtrend will carry on and we’re looking for good entry points to short the Index.
The support of $1266 seems very strong for Gold. There was a two times breakout attempt with no success. We keep on our selling estimations, looking for optimal entry points for short positions at the area above $1290 since the area of $1300 is very difficult to break
US Oil started its bearish trend last week as we had successfully estimated and short positions provided really high returns. The fundamentals do not support much higher prices , but the geopolitics may change the price dynamics favoring long positions. We would remain sellers as the area of $58.20 is possible.