Daily Report - 18 May 2016


End of Day Technical Analysis Report for:

EURUSD, GBPUSD, AUDUSD, USDJPY
, GOLD, and SP500



► EUR/USD: We have been sayin all week to take a Shorting view and we were right. We did not ourselves go Short but hope that some of our readers did. Roday price collapsed and reached the 1.1200 area where we think there will be some support but mild. We think there will be further substantial downside in this pair so anyone not yet short should look to go Short on any retracement.
Technical Recommendation: Should be Short or looking to go Short on retracement.
                                                                 EURUSD - Daily
                                                              EURUSD - Weekly

GBP/USD: a surprising surge today breaking 1.4515 resistance. Price back at the 38.2 Fib retracement of the last downtrend (see Weekly Chart). Today's action now makes us think teh market may mane a push to teh 50 Fib around 1.4880 but there is a lot of resistance in the way so we will stand aside for now.
Technical Recommendation: Stand aside.
                                                               GBPUSD - Daily
                                                             GBPUSD - Weekly

► AUD/USD: simlarly to the Euro commentary, we have been suggesting a Short stance but we have not ourselves taken any positions. With today's downside break through recent lows, we now see teh market re-testing 0.6830-0.6915 band of support so still a long way to go and other chances to get Short.
Technical Recommendation: Should be Short or looking to go Short on retracement.
                                                                 AUDUSD - Daily
                                                               AUDUSD - Weekly
                           Back to Top

► USDJPY: we had been expecting the 50 sma to act as dynamic resistance but it did not work. Price today broke through and closed above it so we must expect further upside in next few sessions. Next resistance is 111.80 and if the market gets there it will have totally retraced the masive weekly bear candle from 3 weeks ago, which we would never have expected.
Technical Recommendation: Look for market to reach 111.80 again.
                                                                 USDJPY - Daily
                                                              USDJPY - Weekly

GOLD:  a collapse through the 8ema and 20 sma today and a close below 1263 significant level so we expect further downside to come. We are bearish fundamentally and technically this may be a trigger to go Short.
Technical Recommendation: Look to go Short.
                                                               XAUUSD - Daily
                                                            XAUUSD - Weekly

► SP500: a daily doji today does not alter our view: there is still a strong chance of we may see a correction in this market. A potential Head & Shoulders reversal pattern looks like triggering although it is tough to see a clear neckline. We look at 2035 as a crucial level. If price closes below that we may well see a hefty correction.
Technical Recommendation: Stand aside with an eye on the H&S pattern.
                                                               SP500 - Daily
                                                              SP500 - Weekly

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