Weekly Price Action & Technical Analysis Outlook | Oct 6-11

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EURUSD – Uptrend Intact, But…
After 4 attempts, the Euro finally closed above the key resistance at 1.3550 level, hitting a high of 1.3645 before pulling back strong on Friday. The pullback was strong so small amount of concern for bulls, but for now, its sitting on top of the same 1.3550 level. If this level holds, bulls can look for price action signals to get long here, or on a pullback towards 1.3460-ish. Upside levels are 1.3645 and 1.3700. For the downside, bears will need to close below 1.3450 to attract more sellers into the fore.

euro key breakout level resistance price action 2ndskiesforex

GBPJPY – Breaks Down As Suspected
Last Sunday in our weekly commentary we commented how the GBPJPY was showing a price action breakdown structure. The pair confirmed this by failing to clear the 160 level, selling off after the pin bar signal. The pair closed last week below the 156.65 level from the heavy selling on Friday, so the uptrend is now on standby. Bears can now look to get short on a pullback setup towards 156.65, targeting 154.30. Only a close above 156.65 would restart the uptrend.

gbpjpy pin bar breakdown key level 2ndskiesforex

Dow Jones Index – Sell Signal Works Out Again
For the last week, we’ve been covering the Dow Jones bearish trend, suggesting to sell on rallies into the dynamic resistance and 20ema. The index did just this pulling back into the 20ema perfectly, then selling off about 100 points since then, so hopefully you profited from that. For now, the trend is still intact, but showing some signs of maturity.

Obviously the US Gov’t shutdown does not help this index. If the DJ can hold above 15k, it might find some profit taking from the bears, so a possible pullback coming. Bears will need to look for pullbacks now towards 15100 or 15200 before getting back in. Bulls will need to defend 15000 and 14930 for any daily close below this sets up 14780 below.

dow jones dynamic resistance 20ema bear trend 2ndskiesforex

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