Weekly Price Action Setups & Key Levels | Dec 20-25
EURUSD – Corrective Structure + Key Support Holds Again (4hr chart)
Last week in our members market commentary, we talked about the 1.08 being a key support level and likely going to hold for a bounce. This happened on Friday with the corrective structure and key support level holding 2x while producing a modest bounce and profit thus far.
For now, I’m suspecting the price action structure should hold with the low liquidity of the holidays. We may see some stops run with the B & C trading desks on hand. But if the structure holds, then play the range for now and watch the blue box for a break to get your next directional clue.
USDCAD – 3rd Corrective Structure, Likely Continuation Trade (4hr chart)
Marching on with it’s massive bull run for December, the USDCAD is currently up over +600 pips for the month. Notice the blue boxes which show small corrective structures hinting the next leg is likely up.
The most recent one resembles the first one with a brief kiss off the 20 EMA before bouncing higher, suggesting intra-day buying interest on dips.
For now I’m maintaining my bullish bias and am raising my forecast for a 1.40 break, and a likely 1.45 touch in Q1 2016. Only a daily close below 1.3630/50 would negate my MT bullish bias.
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