Weekly Price Action Setups & Key Levels | July 16-21
My Current Active Open Positions: AUDUSD, AUDNZD, NZDUSD, EURUSD, EURNOK, EURGBP, USDJPY, EURPLN, AX_UN, CUF_UN, CSE, SBER
EUR/GBP – False Break at Key Resistance (Daily chart)
On our radar heavily the last few weeks, we’ve discussed the key resistance at 0.8850 multiple times in previous member commentaries. This key resistance was broken to the upside on Tuesday after a pre-breakout structure had formed close to the level during the month of June.
Tuesdays strong bullish move was met by an equally strong counter-trend move, taking out 95% of the gains the day before, followed by two heavy days of selling. IMO this makes it a false break above 0.8850.
This means the key S/R level is still in play, opening up for potential shorting opportunities. To the downside, the first 2 areas of support standing in the way in case of a bearish continuation are coming in at 87.60 and 86.75/86.50.
If on the other hand the bulls are able to produce another successful breakout with a stabilization above the level + follow through, we’ll probably see a continuation towards 0.9030 which is the next resistance in line.
OMX 30/SWE30 – Impulsive Corrective Sequence In Play (Daily chart)
The Swedish index has been trading in an impulsive-corrective fashion since December last year. Every corrective structure is followed by fresh buying leading to an impulsive move.
Since the beginning of May the price action has traded between 1600 and 1655, once again creating a MT corrective structure.
This impulsive corrective context tells us that there is a higher probability this corrective structure will be followed by another impulsive move.
If such a move manifests the next resistance in line would be the all-time high of this Nordic index, which is around 1715.
Bulls that are looking to take advantage of this price action can look for possible trade opportunities around the bottom of the structure (1600), or alternatively wait for a break of 1655 and look for a potential BOPB setup to the level.
If this MT corrective structure fails, next solid support in line is 1550.
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