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Weekly Forex Price Action Setups & Key Levels | Apr 13-18
EURUSD – Bullish, But Obstacles Ahead
Gaining 4 of 5 days last week, the Euro continues to hold the downside in check as the last weeks buying spree took out 12+ trading days of losses. The medium term price action structure is bullish, but the pair has obstacles ahead, with the yearly highs around 1.3950, and the big figure at 1.4000 looming above (along with option barriers).
I’ll look to sell into this resistance zone until I get a daily close above 1.4000 with tight stops above. Downside targets are 1.3850 and 1.3700. A daily close above the big figure opens up a lot of fresh upside, with 1.41 and 1.42 on deck.
GBPUSD – Sellers Hold Yearly Highs
In our daily members commentary, we suggested the Cable was likely to sell off with the upcoming major resistance levels. After hitting the yearly highs, the pair sold off about 100 pips. The overall structure is still bullish, but the pair may need to pullback before making another run higher.
Bulls can watch for pullbacks to 1.6650 and 1.6550 for price action signals to get long. Bears meanwhile can look for weak corrective pullbacks towards 1.6820 and 1.6850 to get short.
S&P 500 – Short Term Bearish Pressure After Bearish Engulfing Bar
Selling off 4 of the last 6 days, the S&P 500 has lost 82 points, or 4.3% from the yearly highs, starting with a bearish engulfing bar. In the process, the US index broke below a key support level at 1829, which was the range support since mid-Feb this year.
Below is 1810 and 1800, but a break below these levels would suggest we have a much deeper unwinding in place, and put pressure on 1775 and 1739 (yearly lows).
I’m expecting a pullback of sorts early this week, so I’ll look for price action signals at 1829 and 1850 with tight stops above. Downside targets are 1775 and 1739. Should the index sell off heavy to start the week, then look to get short on breakout pullback setups at the key support levels mentioned.
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