Weekly Forex Price Action Outlook Mar. 18th – 22nd

EURUSD
Last Thursday in my daily market commentary, I discussed how the EURUSD was in a downward sloping channel, which was offering a great selling opportunity at the channel top around 1.3100 for an eventual retest of 1.2900. Price hit 1.3107, sold off, and then on market open gap’d down exactly to 1.2900. This was heavily discussed on my blog, facebook page, and in my traders forum where ‘saavy’ price action traders made some huge pips so hopefully you did as well.

Now that the Cyprus Hill tax has been suggested (although we are not sure whether it will fully manifest with the parties agreeing not to vote the wealth transfer deposit haircut into effect), the bottom line is this severely hurts EZ confidence, for if one country can try it, why not another (i.e. Italy, Spain, Portugal)?

Thus, I’ll look to sell the Euro on any rallies into 1.3100 and 1.3050 targeting 1.2900 and perhaps even lower towards 1.2700 (Nov. 2012 low).

NOTE: I traded this EURUSD setup personally with the actual trade below snagging over 168 pips and over a 5:1 reward to risk ratio.

Live Price Action Trade EURUSD
live price action trade eurusd $eur chris capre 2ndskiesforex.com mar 18th

EURUSD 4hr Chart Channel & Levels
EURUSD downward sloping channel price action trading 2ndskiesforex.com mar 18th

USDJPY
On Mar. 11th I talked about looking to get long on any pullbacks into the 94.50/60 area. Today the USDJPY provided that opportunity by dipping down to the dynamic support and 20ema, then bounced forming a daily pin bar closing above the key support area.  Those not already long off the level, can watch for price action signals off the 94.50 level targeting 96 and 96.50 to rejoin the trend.

usdjpy daily pin bar price action trading 2ndskiesforex.com mar 18th

GBPUSD
After dropping over 1400+ pips, the GBPUSD formed a small pin bar at the bottom and has bounced about 200 pips off the low. This ran right into a with trend pin bar that dinked off the daily 20ema. Today’s price action resulted in an inside bar, so we have our short term range setup.

Bears wanting to get short via the pin bar can do so just below the daily 20ema targeting 1.5000 and 1.4900.  Bulls on the other hand can either wait for a pullback into those levels forming a HL (higher low) and targeting 1.5100 and an eventual break of the pin bar high (1.5175) for a potential deeper reversal up towards 1.5200 and 1.5400.

inside bar pin bar price action patterns 2ndskiesforex.com mar 18th

For those wanting to learn to trade price action, access to the traders forum, lifetime membership & more, visit my Price Action Course page here.

Buddhist, Trader and Philanthropist

Chris Capre, Founder of 2ndSkiesForex, is a professional trader who specializes in trading price action. His blog attracts 150,000+ monthly readers across 110+ countries, including; Australia, USA, Singapore, UK, Canada, & Germany. To discover more about Chris’s Price Action Strategies, visit his Price Action Course page.

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Discussion

4 Comments on the article

  • Jamo - March 21, 2013 2:01 pm

    Your analysis always make me feel like a pro.
    I so much appreciate your kindness and effort in give tips about what is going on in the market.
    Please can i ask you which broker you are using because the platform you use to analyse the candles are not the same here please kindly let us know the broker that can match with yous so that i can get it right

    Thank you chris !!!

    • Chris Capre - March 22, 2013 6:42 am

      I use fxtrek intellicharts for my charting, which is just a charting platform, not a trading platform.

      Hope this helps and thanks for the positive comments.

      Kind Regards,
      Chris Capre

  • mike - March 22, 2013 3:40 am

    how did you know to take the trade on the gap, before you could even know there was a gap to form?

    • Chris Capre - March 22, 2013 6:39 am

      Hello Mike,

      I didn’t. I just felt good shorting EURUSD into the weekend as it was at the level I wanted to short.
      Pure price action is why I traded it the way I did. The weekend gap just helped me achieve my target a lot quicker.

      Kind Regards,
      Chris Capre

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