Weekly Price Action Setups & Key Levels | May 7-12
My Current Active Open Trades: AUDUSD, USDNOK, GBPZAR, EURPLN, XAUTHB, AX_UN
AUD/USD – In profit, key resistance zone held once again (daily chart)
The key resistance zone we talked about in our commentary back in March held once again and everybody short from this zone should now be in good profit.
MT bias is bearish and if the minor support zone between 7300/7400 is not able to absorb all of the selling pressure, we can anticipate a move down towards the key support level at the 7200/7150 handle where buyers can look for opportunities to go long.
GBP/USD – Stabilized after clearing key S/R zone (daily chart)
After breaking through the bottom of the s/r zone between price was stuck between 1.2750/1.2850 for almost a week. After forming a corrective structure, we finally broke through the top of the zone with an impulsive move in the end of the week. This zone should now act as support on weak pullbacks.
In terms of the price action context, this tells us we should look for longs on this pair as long as price holds above this key s/r zone.
Next minor resistance is coming in at around 1.3075 and major resistance at 1.3450.
EUR/USD – Breakout pullback setup in profit (daily chart)
The breakout formation mentioned in our last commentary lead to a breakout formation on Friday after a short failed attempt by the bears to push price lower.
Price came back and found solid support at the resistance which now acts as support around 1.0950. All who took this breakout pullback setup as per our price action course should now be in good profit heading into the new week.
Next resistance is coming in around 1.1130 & 1.1250. If both these resistance levels fold, ultimately, we are looking at a move into major resistance at around 1.1450.
For now, bulls can look to go long on weak pullbacks into 1.0950.
Should this level fail to hold a move back towards 1.0850 is likely.
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