Daily Report - 3 February 2016


End of Day Technical Analysis Report for:

EURUSD, GBPUSD, AUDUSD, USDJPY
GOLD, and SP500



► EUR/USD: we've been waiting for this pair to break out of the 1.0780-1.0970 range as we'd been stung a couple of times in January trading inside the range. It broke out today in spectacular fashion and too fast for us. We were looking for a breakout and a re-test which did not happen. Another reason for our lack of action is the fact  that we were already Long in Sterling and Aussie so buying Euro as well would have meant way too much exposure against the greenback. In any case, now the pair has retraced to the 50 Fib level of the downtred which started last August (see Weekly Chart) so price is most likely going to stall at this level for the next session or two, which will hopefully give us an indication of what the next move is likely to be.
Technical Recommendation: Violent Upside Breakout. Price at Key resistance.
                                                                 EURUSD - Daily
                                                              EURUSD - Weekly

GBP/USD: yesterday we went Long on a retracement to the 38.2 Fib retracement of Monday's upside breakout move. Today we were rewarded with the expected upside continuation. 1.4600 resistance stopped the market momentarily but we believe momentum is high and price will break through. We have an ambitious target for this trade.
Technical Recommendation: We are Long. Position +260 pips in profit.
                                                             GBPUSD - Daily

► AUD/USD: even though price was retracing down to our in-cost in this pair earlier today, we remained Long and were looking for an upside rotation. Today we got it and in spectacular fashion. So much so that we've moved the targets for our Long trade as we feel this rally has more legs to it.
Technical Recommendation: We are Long. Posistion +158 pips in profit.
                                                                 AUDUSD - Daily
                           Back to Top

► USDJPY: having made money being long last week, we were looking to buy back in on a retracement. After today's huge bearish candle, this retracement has become a downtrend resumption so we are forced to change our stance to going Short on a pull back instead.
Technical Recommendation: Re-assessing. Preference to Shorting higher up.
                                                                 USDJPY - Daily

GOLD: 200 sma resistance was broken today as we had predicted. Our Long trade gains even more ground. We have an ambitious target for this also. We remain Long.
Technical Recommendation: We are Long. Position +60 $ (600 pips) in profit.
                                                               XAUUSD - Daily

► SP500: yesterday we said we expected a Higher Low to be formed in the next couple of sessions and price to resume towards our targets, so we would remain Long. Today's long tailed pin bar rejecting prices below 1900 seems to confirm our theory.
Technical Recommendation: We are Long. Position +67 points (670 pips) in profit.
                                                               SP500 - Daily

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