Weekly Price Action & Key Levels Outlook | Nov 10-15
EURUSD – Bearish Under 1.3460
Closing red for the last 8 out of 10 days, the Euro has been getting hammered, down almost 500 pips since the late Oct. highs just above 1.3800. The pair has found some buying interest off of 1.3300 with two rejections off the round number, but the outlook is still bearish while below 1.3460. I’ll look to short the pair on any corrective pullbacks or absorption at 1.3460 which is a key level and breakout pullback area. Only a daily close above 1.3645 would change my bearish perspective.
GBPUSD – Still Holding Key 1.5900 Level, But…
Over the last month the GBPUSD has held the 1.5900 ‘line in the sand’ which tactically means we are still in a range. Keep in mind we had a buy recommendation off 1.5900 which profited for over 9R while other ‘authorities’ and ‘masters’ of price action were waiting for a signal doing nothing. The latest bounce off 1.5900 was weaker, only making it 200 of the last 350 pips before selling off, so it seems likely another attack on 1.5900 is on deck. I’ll consider buying off 1.5900, but only if the intraday charts show bids stepping in. The LH (lower high) on the daily charts is communicating though the pair is likely turning over on the daily charts. A daily close below 1.5900.
EUSTX50 – Bearish Engulfing Bar Off Multi-Year Resistance
Up over 24% since June this year, the EUSTX 50 (Dow Jones For European Stocks) formed a bearish engulfing bar off a huge multi-year resistance that dates back to Feb 2011 and we haven’t seen a close above this level since 2009. The sell off was almost 100 points, so some heavy profit taking, possible option barriers as well. The index recovered on Friday taking back about 40 pts closing off the highs, so bulls still wanting to buy on dips. I’ll look to sell off 3100 with a tight stop above considering the reward potential is high. Downside targets would be 3057 and 3015. A daily close below 3000 will add bearish pressure, while one above 3100 will likely put an attack on 3150.
Make sure to read How I Traded the NFP Price Action on the Euro capturing +75 pips for over +5R.
Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.
Want to Learn Price Action Strategies for Trading Forex?
Sign Up for our Monthly Newsletter and Get our FREE E-Book