SP500 Consolidates Around His All-Time High
EURGBP: The EURGBP falling sharply yesterday retracing all of the week’s gain and falling below the Monday low, posting a new weekly low at .8614. Daily Price action in the EURGBP has formed a bearish outside day, which is indicative of a bearish continuation. Our call is being bearish leaving room to sell rallies, as long as we are below 0.8680. Targets objectives are at 0.8592 followed by 0.8570 and 0.8550. A move above .8680 would negate our outlook and will require a new assessment of recent moves.
AUDUSD: Price action in the AUDUSD was minor yesterday after posting a long bullish candle a day earlier. The AUDUSD is coming off today at early Asian session retracing 50% of the gains made from Friday’s lows. The AUDUSD is struggling to move higher and encounters sellers on rallies. The latest retracement from weekly highs could offer buying opportunities. Our call is buying the latest decline for a move above the monthly highs at .9304 as long as we are above .9070. A move below this level will negate our outlook and turn bias back to negative and for a bearish resumption below monthly lows at .8997.
SP500: Price action has been minor this week in the SP, while prices are consolidating around the all-time highs posted earlier this year on May. The index appears to be forming a Doji star on the weekly time, which is indicative of an exhaustion or indecision. One of the alternatives to trade this is to buy the index at the break of the all-time which could yield a decent move up. The alternative scenario is to wait and see if the all-time holds at resistance and to sell the index at the break of the weekly for a deeper move lower towards 1662 initially, followed by 1650.