Weekly Price Action Chart Outlook | Oct. 14th-19th
*Note: I am back from a week vacation so expect a full week of articles and market updates.
After selling off for the first half of last week, the pair formed a similar ‘final flag‘ pattern approaching the 1.2800 barrier, this time a smaller version of the prior one, before forming a pin bar rejection to bounce and end the week. Short term the pair is stuck in a relative range between 1.2821 and 1.3054 so watch for intraday price action triggers at these levels. If 1.3054 breaks, a test of 1.3150 is up next where we had a double top on Sept. 17th. If 1.2800 breaks, then a possible deeper unwinding to 1.2651.
Stuck in a short term channel, the GBPJPY has had more impulsive selling than buying within this channel so am slightly more bearish than bullish. Notice the two large rejections towards the upper end of the channels with the last one forming a large pin bar setup. Traders can look for rejections at the upper end of the channel to get short while looking at short term longs around 124.00 but between the two, I’d rather sell 2 out of every three trades inside this channel.
After holding the 1.0150 area last week and climbing for three straight days, the Aussie stopped dead in its tracks just shy of 1.0300 where it has formed a triple rejection there. Short term traders can look for plays in the three day range that has formed just shy of 1.0300 with the bottom around 1.0215. The rejections on the upper end of this range just below the dynamic support and 20ema are larger than the buying on the bottom suggesting selling interest is willing to hold the upside short term. If 1.0150 breaks, then 1.0100 should be under attack shortly after but last weeks price action looks like its part of a corrective bullish pullback before possibly more selling.
Selling off for 4 of 5 days last week, Gold has one level below before its uptrend structure will be weakened and broken short term. The key level to watch for the precious metal is around $1739 where it formed a pin bar rejection off the daily 20ema which has held up price action (until last week) since mid-august so bulls have to be cautious here.
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