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EURUSD – Euro/dollar uptrend continues after pullback to buy-zone
The moves we saw last week in the EURUSD were insane, absolutely huge. For the last few weeks we have been long-biased, looking to buy the EURUSD on a pullback to support, well the market finally gave us a chance last week. Here are the key points to understand…
- We had previously been looking to buy between 1.1950 – 1.1860 which you can read about in our January 8th commentary. This outlook is in agreement with the uptrend the EURUSD is in, as well as a monthly chart time frame bullish pin bar that formed in December (check your monthly chart to see it).
- We can see in the second EURUSD chart below that price pulled back to the 1.1950 – 1.1860 support zone we were looking to buy from last week, providing a potential entry opportunity mid-week. Price surged higher Thursday and Friday, bringing anyone who bought near our recommended zone a huge profit.
- It’s important to point out that there was a bearish pin bar on Wednesday of last week that we did not see as a short signal, and that sentiment was reflected in our daily members market commentary that day. We held firm to our bullish bias as we know everything has a context to consider; skilled traders know when to ignore a false-signal and when the technical chart picture doesn’t agree. This is why I always say we need to read a chart from left to right and on multiple time frames and not only look for entry signals. Knowing when to stick to the original plan and ignore counter-trend signals is part of the skill of a seasoned pro and something I expand on greatly in my members’ area.
- Going forward, those who are not already long from last week’s opportunity can still look to buy. We can wait for another pullback to support down near 1.2090 – 1.1950 and look to rejoin the uptrend from there.
See before / after EURUSD daily chart from last two weeks below:
GBPUSD – Sterling/dollar explodes higher after bullish tailed bar
The tailed bar is a price action signal I discuss in-depth in my courses. It’s one that is very effective in trending markets or after pullbacks. We can see last week in the GBPUSD, this pattern led many of our members to a potentially very profitable trade. In our January 11th members trade setups newsletter, we discussed that the bullish tailed bar which formed that day (see below) could potentially lead to a breakout and continuation of the strong uptrend the GBPUSD had been in. You can see what happened from this signal so far. We see the potential for more upside in this market and we will continue to watch for price action signals to buy on any further weakness /pullbacks this week. Traders should watch 1.3600 for buying opportunities on a pullback, down to 1.3450 this week.
Gold – Gold is going higher
S&P500 – S&P500 US stock index bullish trend not slowing down
The insane uptrend in the S&P500 just seems to keep climbing higher each week. This is proof that markets go further than we think and so we should keep trading with trend until the price action tells us it’s over. This week, we can watch for 1 hour, 4 hour or daily chart price action buy signals on a pullback / weakness. Note the small pin bar that formed last Wednesday. In a strong trend like this, these signals are also worth considering. Watch the 21 day ema (blue level) and 2698.00 area as the primary support to get long at or near.
China50 – Chinese Stock Index roaring higher
After our discussion in our January 8th commentary in which we talked about getting long the China50 index, in-line with the obvious uptrend this market has been in, price again pushed higher. You'll notice there was minimal pullback last week. As we discussed on Tuesday in our members’ daily trade setups commentary, there was an inside bar breakout early last week which savvy price action traders could've entered for a nice entry into this uptrend. We're still long-biased on this chart and traders can look to buy pullbacks with a price action signal again this week. We're bullish above 13445 area and the 21 day ema (blue level).
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