Weekly Forex Price Action Setups & Key Levels | May 25-30
NOTE: Tomorrow is the Memorial Day Holiday in the US, so expect thin markets come NY session all the way through to Tokyo.
EURUSD – Pin Bar Fails, Bearish Bias
Losing ground 6 of the last 7 days, the Euro broke through the two pin bars lows, hitting a 3 month low last week. I’m expecting the bearish price action to continue with the potential to return back to the ‘big figure‘ at 1.3500.
Our Trade Idea: Look for corrective pullbacks towards 1.3670.95 area to get short with stops just above 1.3740. Downside targets are 1.3560 and 1.3500.
GBPJPY – In A Corrective Structure
After forming the large engulfing bar + false break on the daily charts, the GBPJPY has moved into a corrective structure for the last two days. There are a lot of topside rejections and small pin bars inside this corrective structure, suggesting bears are holding the offers just shy of 172 for now.
Our Trade Idea: Look for a corrective pullback into our buy zone (~171.15-170.80) to get long. Should the bulls hold this line, then if it can ‘recover’ 171.30, then it should resume its upside attack towards an eventual target of 172.50.
Crude Oil (WTI) – Approaching Critical Barrier
Closing bullish 75% of the last 16 days, the commodity is rapidly approaching the 105 big figure and key resistance. The last approach to this level showed selling ahead of time, which is notably absent this time, suggesting an eventual upside break. However I’m suspecting bulls will take profit ahead of the level in anticipation of running into sellers here.
Our Trade Idea: Look to get short a few points below 105 with a tight stop above 105.20, trading half your normal position size (due to the current bullish bias). If sellers emerge, then downside targets will be 102.50 and 100. A daily close above 105 opens up fresh upside towards 108.75.
Check out our live trade setups of the week using price action
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