Weekly Price Action Setups & Key Levels | Mar 13-17
My Current Active Open Trades: AUDUSD, AUDNZD, XAUTHB
Tesla – Corrective Structure In Place, Bearish Below Key Level (4hr chart)
After the big sell off to end last month, Tesla has formed a corrective structure between 255 and 242 (red box below). This shows very little buying interest since the sell-off, which lends itself to the next move more likely being bearish than bullish.
If the key levels around 255 and 265 hold, and are followed by impulsive selling, then we’ll likely see a retest of the 242 lows, and perhaps a move lower towards 200.
If however these levels fold, then we’ll likely see another attempt to tag the yearly highs around 287.
Until that happens, I’m keeping my bearish bias.
EURGBP – Approaching Major Resistance Zone (daily chart)
Continuing on it’s tear, the EURGBP has gained 10 of it’s last 12 days, along with racking up almost +400 pips in the process. The pair however is now approaching a major resistance zone around 8854, which held as resistance in Jan this year, and support in Oct last year.
My guess is there will be some initial profit taking from the bulls if this level is reached soon, along with some long term sellers looking to short, so am expecting the price action to fall a bit from here.
If the key resistance zone holds, then the first point of attack will be around 8650/75, and the next one around 8500. If however we get a daily close above 8854/8900, then we’ll likely see a run to 9000 before more bears step back in.
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