Weekly Price Action Setups & Key Levels | Jan 1-6
Happy NY Everyone!
My current active open trades: AUDCAD, AUDNZD, Netflix
NOTE: If you haven’t seen my end of year message to you, click here.
USDJPY – Corrective Pullback Holds Key RRL, ST Bullish Bias (4hr chart)
As we’ve been talking about in our recent commentaries, we felt USDJPY would be bullish while holding above 116. Thus far, the price action has formed a corrective pullback with the 116 level holding for now.
I’m ST bullish while above this RRL on a daily closing basis. Upside There is scope towards 118.45 (Dec. spike highs) and further potential towards 121.
Netflix – LT Bullish, But ST Major Resistance Zone Capping (weekly chart)
For the last two years, Netflix has been stuck in a large corrective structure between 80 and 130+. Overall the price action is building for an upside breakout IMO and my LT bias is bullish while above 80 on a weekly closing basis.
However ST there are some headwinds as the stock ran into a multi-year resistance zone between 125-132+ now rejecting a 2nd time in the last few months here.
I’m expecting some profit taking and a pullback ST, but am looking to buy should it get to a sub-100 price.
Upside I’d target the top of the range/structure, with an eventual break and move towards a LT target of 200.
EURUSD – False Break Setup in Play, ST Bullish Above Key Zone (4hr charts)
After breaking below the multi-year support level around 1.0450, the EURUSD triple tapped the 1.0350 yearly lows before rebounding to end the year.
While this was likely some profit taking, ST the pair has created a false break setup since it’s now above the 1.0450-1.05 support zone.
I’m ST bullish while above this zone on a daily closing basis. If it holds, there is scope for a move towards 1.0750. Meanwhile, a break below this zone will have to clear out the 2016 yearly lows before adding technical sellers to the fray.
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