Week 6/2016 Summary
As always, let’s check what was going on during last week.
GBP/JPY went down really hard. Support at 164.5 did not hold and the price went down. It stopped at 161.8% extension, which was rather easy to spot from 1h or 4h charts. Below 4-hour chart:
Anyway, thanks to the strong trend it was not hard to spot ABCD patterns on GBP/USD.
I wrote recently that I wait for EUR/USD to make a move because it was trapped in a triangle. It finally broke above top resistance and it went up to the 161.8% Fibonacci extension line. 4-hour EUR/USD chart:
It is also important that on daily chart it broke above 100 SMA. Daily EUR/USD:
Thanks to that strong move up EUR/USD is near highs from 2015. So another decision point for this pair. Weekly EUR/USD:
It wasn’t that easy on SPX. It looked like it may go below 1800 support area. Then after one news about oil it bounced right from 127 extension:
1804 – 1832 points range is an area where important supports are, below weekly SPX:
So let’s have a look at oil. There was a news (or rumor) that OPEC may finally agree to cut production which will normalize the market. There was a strong reaction (oil went up almost 5$). It is interesting that it went down to 25$ and after a bounce we have this pin candle on daily chart:
We will see if this pin will mark the end of down move.