Weekly Price Action Setups & Key Levels | Jan 9-13
My current active open trades: GBPUSD, USDJPY, AUDNZD & AUDCAD
NOTE TO TRADERS: Power just came back on after 36+hrs off. Thank god for a fireplace as it would be cold in this mountain cottage mo-fo at night!
EURUSD – Holding Above False Break Level (daily chart)
With the price action holding the yearly lows around 1.0350 last week for a 3rd time in the last 30 days, the EURUSD is attempting to build a base above the false break level we talked about in our last commentary (1.0515). Thus far it’s held 3 days above this level and the longer it does, the greater the chance the base is in ST.
The pair needs to clear 1.0650 which is the pin bar’s high from the end of December. If it breaks this, then we should see an attempt on 1.0775/1.0850 which is the Dec highs.
If it fails to break the 1.0650, then any reselling pressure will attack first 1.0515 and then the 2016 lows around 1.0350 which I’d be open to buying should it get down to those levels.
WTI Oil – Corrective Structure At Top of Trend, But Potential Weakness (daily chart)
Since mid-Dec last year, WTI has held above the 51.63 key role reversal level forming a corrective structure at the top of the trend.
Normally this would be a more bullish sign than anything else, however there is some weakness in the corrective structure with a failed new high, then follow up impulsive selling.
If the 51.63 level fails to hold on a daily closing basis, then we’ll likely see more unwinding, perhaps towards the 50 handle and maybe further down towards 42.50.
Should it get down here, I’d be open to buying again.
If however the 51.63 level holds, then we’ll likely see another attack on 54.28 and the 2016 highs of 55 before profit taking enters the fray.
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