MARKET FIX 08/11/2021

EURUSD New Lows Expected

With clear bearish price action, we can now expect to see new lows. Support is @ 1.151 with a break below that likely seeing a move towards 1.142 as this is where diagonal support meets the MS2 pivot. Resistance for the week is @ 1.159 (combination of the 21 EMA and MP).

GBPUSD The Move Lower Continues

Last week saw our short target being reached with price finding some support from the previous swing lows @ 1.343. It is possible that we see a slight retracement to somewhere between the Weekly Pivot @ 1.355 and 1.360 before the next leg down commences. Either way, possible short targets for the week are 1.337 followed by 1.326

EURGBP Further Upside Expected

Last week saw our bullish target being reached @ the Daily 200 SMA with price now finding some resistance. We are still expecting further upside, but a pullback towards the weekly pivot @ 0.853 would provide a better risk to reward entry. The next bullish targets pending a breakout would be 0.862 (WR1) followed by 0.869 (WR2)

AUDUSD Still Bearish

Last week we mentioned that we expected a break lower after what seemed to be a head and shoulders pattern, but as it turned out we never saw a right shoulder and instead proceeded to break lower immediately. Currently price is trading above support from the Daily 100 and 50 SMA’s with a pullback providing a great short entry opportunity. Bearish price action could see a short target of 0.728 realised for the week with stops to be considered @ 0.753.

NZDUSD Failed Breakout or Re-test?

Last week we discussed the consolidation mentioning that we were expecting an imminent breakout either to the upside or the downside. As it turns out we had a breakout to the downside with price re-testing the initial symmetrical triangle breakout level and also finding some support from the Daily 200 SMA. At this stage, if support does hold it could mean that this was simply a re-test of the bullish breakout and we could see a new bullish trend in the weeks to come.

USDJPY Tight Consolidation In Uptrend

USDJPY is still consolidated above the Daily 21 EMA and the weekly pivot, which typically signifies a new breakout in the direction of the trend as the highest probability outcome. If this turns out to be the case we can expect new bullish moves to 115.489 followed by 117.039 in the weeks to come. If however, we see a deeper pullback to 50% the Daily 50 SMA @ 111.9 would act as support.

NASDAQ How Much Higher?

After a relentless grind higher, last week Friday has seen the formation of a doji candle which could hint towards the first signs of possible trend exhaustion. This current level of resistance is also significant as it is where we have the monthly R1 pivot and diagonal trend line converging. In the event of even more exuberance, there is very strong resistance between 16615 and 16877 which more than likely would see this bullish run take a break. The levels for a correction would be as follows; 21 EMA @ 15750, 100 SMA @ 15250

XAUUSD Uptrend Established

The uptrend in XAU has now been established with the recent break above the Daily 200 SMA. This means we can also expect to see a lower boundary of support established after the first pullback. For now, it is possible that this support boundary will be somewhere around 1790 with the next bullish move reaching 1830 followed by 1850

BTCUSD Double Tap or Continuation Higher

The recent head and shoulders pattern has now been invalidated with a break above the righ shoulder formation. This is technically very bullish with upside to 71k well in reach. If however, this breakout turns out to be false breakout and instead turns out to be a large double top we will have a short target @ 50k on our hands. So caution is advised.

XRPUSD We Have Lift-off

We have been hoping for this breakout and so far have already realized our first target from the YR3 @ 1.29. From here the next bullish target would be 1.37 with support now just below the weekly pivot and breakout level @ 1.15