Weekly FX Price Action Chart Outlook | May 5-10
The chopfest continues for the Euro, which sold off almost 200 pips from the pin bar signal we discussed last week. The pair is inside now a larger range, with a ceiling of 1.3240 and a floor of 1.2950. With the recent sell-off finding buyers ahead of support on the 20ema, we may see another push higher first, but being the nature of the range has been quite choppy, I’m not willing to trade it till the range top or bottom.
Despite having a few setbacks, this pair continues to build up buyers consistently around the dynamic support and daily 20ema which has held the pair up since the middle of April. The strong buying on Friday erased several days of losses, so the pair should likely challenge the yearly high at 131.22. Bears can look for intra-day price action signals here, while bulls can look for pullbacks into the 20ema and 128.50 region to get long, but this type of price action building with the consistent HL’s (higher lows) while having a consistent high suggests upside continuation.
Similar to the EURJPY, the GBPJPY has shown even greater support amongst buyers by taking out the yearly high at 153.89 to end last week. This pair has levitated above the 20ema, communicating how the buyers were continually stepping in on dips and expecting higher prices. Upside targets are now 155.84 and then not much is around till 160 and 162.60, so a lot of air up there, thus we remain buyers on dips into 153.80 down to 151.30.
On Tuesday in my fx market commentary, I talked about the significance of the $1480/84 level and that bears can look for shorts there. The PM sold off over $40 from the level so hopefully you profited from this. The precious metals ability to hold at this level is impressive to say the least. The range highlighted in the chart below still takes precedence, so play this like a range till it breaks either side of the fence. A break above $1484 targets $1500 and $1520, while below $1440 brings up $1432 and $1425.
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