Weekly Price Action Setups & Key Levels | May 8-13

AUDJPY – Yearly Support & Lows Under Threat, Bearish ST (daily chart)
Following up from my market commentary on Thursday, I’m still short the AUDJPY and currently up about +170 pips of profit early market open today.

The pair has sold off 6 of the last 8 days and was further bolstered by the RBA surprise rate cut which sent the AUD basket reeling on the week.

What is interesting to note on a technical – price action basis is the break of the major support level at 79.60 which has not seen a daily close below it this year.

The yearly lows are just below at 77.55 where the pair formed a long tailed pin bar. However the rally from here (while notable) did little to alter the longer term price action context which is a large corrective structure + balancing zone between 79.60 and 86.20.

I’m guessing bears will probably cover their shorts just before the yearly lows are reached and a small bounce ensue. However should the pair break below this level, then we’ll likely see some further unwinding with 75 and 72.50 put on notice.

Only a daily close above 80 would negate my bearish bias ST & MT.

audjpy daily chart 2ndskiesforex

AUDUSD – Bearish Post RBA Surprise Cut (daily chart)
After the surprise RBA cut recently, the AUDUSD had its largest 1 day decline since 2011. The pair had already formed a false break setup around 7700, and the selling from here negated any chance of bulls re-attacking the 78 handle last week.

I’m bearish ST & MT on the pair while below the 77 handle and 7500 on a daily closing basis. I’m currently short and holding for a move down towards 7250 which is the next major support level.

Traders not already short should look for weak corrective pullbacks towards 7490 and potential opportunities to short.

audusd daily chart

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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