Weekly Price Action Setups & Key Levels | May 15-20
AUDJPY – 3P Fails, RRL Setup in Profit (1hr chart)
Last week in our price action commentary, we talked about the AUDJPY and potential for setups on both sides of the market. Of key note was how we mentioned if 79.45 fails, then we’ll likely see a move back down towards 78.
As you can see from the image below, I practice what I preach and I shorted this RRL setup and am about +80 pips of profit as we write this post.
For now my target remains the May 5th low just above 78, however I may lift the limit if I think this will fold for a larger move down towards 75.
Only a daily close above 79.90 would negate my bearish bias ST & MT.
NZDUSD – Structurally Bearish Following Failed Attempt to Rally (daily chart)
Looking at the chart below, the NZDUSD was in a channel for a few months before it formed a double top at 7045 and then sold off. What is more interesting is how the base of the double top acted as a ST resistance level last week and has since sold off.
Structurally I’m bearish on the Kiwi ST, MT & LT. Traders not already short can look for rallies into resistance. Meanwhile on the downside a move towards 6600 seems like the next threat and then a potential return towards 6400 which is the major lows for the year.
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