Weekly Price Action Setups & Key Levels | Oct 12-17
EURUSD – Trend is Volatile, Looking for Solid Pullback to Short
Forming a deeper pullback and thus making the trend more volatile, the Euro formed a solid bounce of ~300 pips, before finding sellers again. Because of the nature of the volatile trend, we want to look for deeper pullbacks to short.
I’m looking to sell around 1.2817 or 1.2900 to trade with the trend. If any selling that resumes becomes corrective, its likely we’d have a two way market for both sellers and buyers to play the levels.
A daily close above 1.30 negates the current bear trend (by and large) with 1.25 being the key support level for bears to take out and bulls to defend.
EURGBP – Bounces Off Role Reversal Level
Bouncing off the 7893 role reversal level, the EURGBP (4hr chart below) has dropped about 40 pips after a second attack and double top. If we can get more aggressive selling after a corrective pullback from here, we’ll likely see buyers give up till we get back down to 7800 and 7760.
Bulls will want to wait at this level before buying, while anyone not short will want a weak price action pullback into the role reversal level. If 7760 folds, then we will likely not see much support till 7600 and the big figure at 7500.
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