Weekly Price Action Setups & Key Levels | Jan 15-20
My current active open positions: EURUSD, USDJPY, USDCAD, AUDCAD, AUDNZD
EURUSD – Corrective Pullback But Building (daily chart)
Last week as we anticipated, the Euro continued to build while holding above the key 1.0515 RRL on a daily closing basis. Price action last week made it up into the high 1.06’s stopping out any pin bar traders who sold the bogus 50% retrace tweak entry.
The overall price action context is bearish MT while ST the pair is building (albeit in a corrective pullback structure). Bears will need to have a daily close below 1.0515 on a daily closing basis to put pressure on the yearly lows around the mid 1.03 handle.
In the meantime, should the pair make a new monthly high, then next major resistance zone is around 1.0845 which is a key RRL.
GBPUSD – Gapped Down On Early Asia Open + Brexit Talk (daily chart)
While the market is still opening across a few brokers, the Cable gapped down on the open, likely due to the ‘Hard and Clean‘ brexit talk from PM May. Currently the pair is sitting in the high 1.19’s but option traders and fx desks across many banks are calling for a 1.15 touch in the near future.
I’m remaining bearish while below 1.21 and 1.24 on a daily closing basis. Only a daily close above the latter will negate my ST and MT bearish bias. Downside I’m expecting a move towards 1.18 and 1.15 before bulls come back in force (save for a change of policy towards Brexit in the UK).
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