Weekly Forex Price Action Chart Outlook | Dec. 9th-14th
Selling off for the last three days, the Euro gave back the prior 5 day’s worth of gains via impulsive price action selling. This was likely a combination of strong profit taking from the prior 450pip bull run, along with sellers waiting at the 1.3129 triple top resistance area. Short term the sellers are still in control, so downside levels to watch for possible price action signals are 1.2800 and 1.2659.
Showing a fair amount of strength and resilience, the Kiwi has climbed 4 of the last 5 days, and has also hit a key triple top level at .8350. Intraday the pair rejected off the level on Thursday (mildly) which was followed by an inside bar to close the week. This could very well be a with trend continuation signal before a breakout, so trades should be alert here. Sellers can use this level with tight stops above, but buyers may get a breakout pullback setup should it clear the air above .8350, so plays on both sides here. Any selling and rejection at this level should push the pair back down to .8250-ish.
The last three days for Silver last week were quite interesting as the pair formed an inside bar (which followed a doji), along with another inside bar, so an ii pattern. Intraday price action traders clearly have their battle lines drawn with intraday support a hair above $32.50 while bulls have their short term resistance at $33.25. Also along the resistance level stated is the daily 20ema which could also be hampering the upside short term.
This short term range is likely to clear this week, so watch for a break on either side for clues. Downside support levels are $32, $31.50 and $30.65 while upside resistance comes in at $34.30 and $35. It should be noted if the Fed is likely to signal more QE this Wednesday, then we could see accumulation ahead of the announcement in the precious metal.
Holding its own worse than Silver, Gold had sold off 6 of 8 days prior to finding support at the $1685 level. This level has now held three times intraday, forming an inside bar on Thursday and following it up with a pin bar setup on Friday, suggesting intraday buyers coming in at this level. The precious metal has short term resistance just above at $1705, but should it clear this, $1715 and the daily 20ema are up next. Should $1685 fail, then a key support at $1673 is up next.
***NOTE: Make sure to check out my intraday price action Gold trade for +1415pips of profit on Friday.
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