Weekly Price Action Setups & Key Levels | Apr 7-11

EURUSD – Weekly 20 EMA Holding
Stepping out to take a look at the weekly chart, the Euro has sold off for 3 weeks straight, landing right on top of the weekly 20 ema (@1.3679). The pair is holding that line for now, which was also a SH (swing high) back in Jan. this year, so there may be some slight underpinning to start the week.

Watch for a push back up towards the key resistance in 1.3820 that we talked about last week.

***For a great video lesson on Finding Key Support & Resistance Levels, click here.

If last weeks low at 1.3670 collapse, we’ll likely see an unwinding towards 1.3500

eu daily market commentary

Dow Jones Index – False Break of 16560 Level
The former all-time-highs of 16560 were taken out late last week, printing a new ATH of 16650. But instead of holding the highs, the US index sold off massively to end last week, forming a false break + engulfing bar.

After losing ground from the open to start this week, bearish pressure is continuing, so I’ll look for a price action setup towards 16560 to get short on a corrective pullback. Downside targets are 16350 and 16210. Only a daily close above the ATH will suggest the short term bearish sentiment is over.

dow jones daily market commentary

Gold – Forming a CT Impulsive Move
After shedding over $100 selling off for 9 out of 12 days, the precious metal is forming a CT  impulsive move (counter-trend). Over the last 3 days, the PM has taken back 4 days of losses, suggesting the commodity is potentially forming a short term base around 1277.

I’ll watch for pullbacks towards 1293 to get long, with stops below the swing lows ~1278. Upside targets are 1307 and 1331.

gold daily market commentary

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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Niels

    Hi Chris,

    I have two questions regarding the counter trend impulsive move.
    First, I believed that when there is an impulsive move, this is also the trend. Maybe it is countering the trend before that, but it still is a change of trend. So not countertrend.
    Otherwise it would be called a corrective move.
    So, regarding to the impulse countertrend move on gold, should I see this as the new trend (bulls have taken over) or should I still regard the downtrend in place (bears in control)?

    My second question, you haven taken three bars as indication for the impulsive move.
    Is three bars enough data to decide if a move is impulse or corrective?
    While writing this I think that maybe on a lower time frame (4 hour or 1 hour) there are more bars and so more reliable data available to call this move impulsive.

    Hmmm, still not sure.
    Thanks in advance for your time and effort answering my questions.


    • Chris Capre

      Hola Niels,

      Good questions. Impulsive moves by themselves do not always = a trend. They can be impulsive and counter-trend.

      RE: Gold Trend
      I now consider the short and medium trend to be bullish on gold for now. Its climbed 6 of the last 9 days, and is taking out some key ground.

      RE: 3 Bars for Data
      The number of bars by itself does not indicate whether it can or cannot be an impulsive move. Technically 1 bar could be, especially if it takes out the prior 10-20. So try to think in terms of the force of the move, not so much the pure number.

      Hopefully this answers your questions.

      Kind Regards,
      Chris Capre