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Weekly Forex Price Action Outlook | Feb 16-21
NOTE TO TRADERS: Tomorrow in the US is a bank holiday, so US markets might be slow and less volatile
EURUSD – Building A Case for More Upside
Last Sunday in our weekly forex price action outlook, we suggested after the false break, and failure to attack the range lows, the Euro was building a case for more upside. As suggested, the Euro has made further gains on the week, pressing up against the key resistance zone around 1.37/3720 area.
A daily close above 1.3720 suggests the pair is working towards an attack on the swing highs around 1.3810/20. Short term we remain bullish if we can clear 1.3700. Bears can watch for intra-day corrective price action heading into 1.3820 to short the pair. If it shows aggression heading into the level, then watch for a breakout pullback setup above to get long.
GBPUSD – Breakout of Key Resistance Level
After forming dual pin bars on Feb. 5th, the pair rocketed higher closing bullish 7 days in a row and breaking above a key resistance level. Taking out this swing high will likely lead to technical players getting more bullish. I’ll look for breakout pullback setups between 1.66 and 1.6650 to get long. A daily close below the former level in a quick move suggests a false break. Upside targets would be 1.68 and the big figure at 1.70.
Spot Silver – Huge Breakout Above Key Level
While we were writing about our highly profitable gold trade, Silver on Friday last week had a hugely bullish day, taking out two key levels in the process. The precious metal was held below 20.42 since mid-November last year, but in one bullish surge took this level out. This likely triggered long term bearish stops while giving fresh ammo to the bulls.
I’ll look to get long on corrective pullbacks into 21.24 and 20.50 with stops just above 20. Upside targets will be 22.75 and potentially a return back to 24.50/75.
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