Weekly Forex Price Action Outlook | May 19 – 24
EURUSD – Approaching the Yearly Lows
Selling off for 7 days straight, which is the longest stretch of the year, the Euro is fast approaching the yearly lows at 1.2744. You will notice on the daily chart below that every one of the 7 days of selling (save for the 4th) had significant wicks on the bottom, suggesting that although the pressure is down, the pair is having to fight through buyers along the way.
I suspect they will show up at the yearly lows and make a defense there, so bulls can look for price action signals at the yearly lows. Bears meanwhile can look for pullbacks to rejoin the trend, particularly watching the 20ema on the 4hr chart for sell signals.
EURJPY – Pullback To Key Level Plays Out
On May 13th this week, we talked about looking for a pullback setup on the EURJPY to rejoin the trend, particularly around the 131.12 level. The pair came within a handful of pips from here, then bounced over 130+ pips. Many savvy price action traders caught this move off the key level, so hopefully you did the same.
The pair is now approaching the yearly high at 132.76 after an inside bar setup and break higher. Should this pair take out the air up there, then 134.30 is up next which is a swing high level from 2009, but we remain bullish and are only looking for buy signals until the dynamic support and 20ema are taken out.
AUDUSD – Pairs Sells off +500 pips from Signal
Back on May 7th in my FX market commentary, we talked about how Soros was selling the AUDUSD, and to look for pullback setups at the key level around 1.0221. The pair pulled back to this level, went a little past, then sold off massively, and has been in an impulsive downtrend ever since, forming only one bull close in the last 10. From that sell signal, the pair has sold off over +500 pips, so hopefully you captured some of that move as many students in our price action course caught this, and many sell signals along the way.
The pair is now approaching a multi-year support level at .9630 and .9587, so we may see some stalling here. But I do not expect this trend to end anytime soon. So will look for pullbacks into .9800 and .9860 to rejoin the trend, but all bearish action here, so only looking for sell signals.
Spot Silver – Sitting Above Yearly Lows
Down almost 30% on the year, Silver is currently sitting above the yearly lows at $22.00, just two dimes above it at the moment. The pair formed a pin bar signal on Thursday at the yearly lows, but so far the precious metal has sold into almost all of it. This key level is quite critical for silver bulls, for below $22, there is really nothing until $20, so a break below here, suggests another $2 fall. Bulls can look for small longs off the yearly low, but should this break, best to look for sell signals towards the big figure at $20. Bears can wait for breakout pullback setups, or rotations back to $23.50 before selling again.
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