Another interesting week behind us, with a twist at the end.

Eur/usd did not give good trade opportunities. It was flat most of the time. It failed to even try to break above the cloud and 1.10 level on a daily chart which I was writing about in last week summary. Now it looks like it is possible it will go down to the lower support line.

2016-01-23_eurusd-daily

The situation for euro is complicated if you check weekly chart:

2016-01-23_eurusd-weekly-forex

You can see that eur/usd is near supports from March and April 2015. If this will be an ABCD pattern, then we can see a move down to D point somewhere near 1.0000 level. With a lack of action from buyers in recent days, it is more and more possible.

Gbp/usd is in a strong downtrend, but support at 1.42 hold… for now. You can see that clearly on monthly chart:

2016-01-23_gbpusd-forex

The overall trend is still very bearish so, for now, we are probably looking at some correction on gbp/usd.

I like those strong trending conditions because Fibonacci works great on many time frames. I also tend to set my profit targets at higher extensions: 161.8% or even 200% (usually close half at 161.8% and rest at 200%). When I am not sure about trend strength, then I close part of my position at 127% or 138.2%, but in recent weeks I was hunting down the bigger fish.

I mean moves like this:

2016-01-23_gbpusd-1hour-forex

Oil stopped close to my target at 25$. THe low was at 26.6$ and then we saw a strong correction up. Why this level? From weekly chart on oil you can see that this was 138.2% extension:

2016-01-23_wti-oil-weekly

It is hard to predict next moves on oil. I think that we may see a correction up to one of Fibonacci retracement lines and then selloff will continue. Situaltion is interesting because oil is moving recently near 20$-30$. Somewhere here we may expect the bottom of move down.

BUnd is in a strong uptrend. I had some very good trades on bund. On weekly chart you can see that bund is near 161.8 high. We will see how bulls will deal with that resistance:

2016-01-23_bund

SPX protected support around 1820 points and we saw a stronger bounce up above 1900 points. Weekly SPX:

2016-01-23_spx-weekly

I am still rather bearish on SPX, but for now this is a place where we may see this correction to continue up.