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.

eurusd price action key resistance zone breakout pullback setup 2ndskiesforex

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.

gbpusd dual pin bars impulsive breakout 2ndskiesforex

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.

silver breakout key level corrective pullbacks 2ndskiesforex

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • BC

    Just got done reviewing my charts and prepping for this week about 20 minutes ago. Sat down, fired up the iPad, and saw the outlook for this week. There is nothing more confidence-building than seeing your own analysis almost identically match your teachers. It just goes to show you that there is no crystal ball or secret strategy behind the curtain which Chris uses. The methods he employs as a professional trader are the same he teaches in the course. They are simple and logical approaches to trading. Confidence doesn’t solely come from external factors, as Chris teaches, but, seeing this definitely helps.

    The more I learn about trading through Chris’s methods, the more I learn about myself as a person. Just like anything in life, if you try to over complicate trading, your destined to fail. The “easier” I make trading, the more courage I attain.

  • Luke

    I like the helpful info you supply on your website, particularly in your weekly and daily commentary.

    Will be joining your course soon.

  • WQ

    Hi Chris,

    For XAGUSD, I’m wondering where you get the pullback number 21.24? I only found there were several pin bars in 2013. Oct which formed support level around 21.24. Is it that?

    Thanks

    • Chris Capre

      Hello WQ,

      Our analysis of the intra-day price action is what led us to that level.

      Kind Regards,
      Chris Capre

  • WQ

    Thanks for your reply Chris

    After looking at lower time frame, now I know where the number 21.24 comes.
    I only looked at H4 and higher time frame before. After read your articles now I also look at lower TF and found it’s very useful.

    Thanks for your great articles

    • Chris Capre

      Hello WQ,

      Yes, anyone looking at only the H4 or D1 time frames would have missed that level. It’s important to have a balanced perspective.

      But glad you are liking the articles.

      Kind Regards,
      Chris Capre