Weekly Price Action Setups & Key Levels | Oct 16-21
My current open active trades: USDCHF, Silver, AUDCHF, AUDUSD (option) $Sber
AUDCHF – Small Corrective Rejection at Key Resistance Zone (daily chart)
After tagging the key resistance zone we’ve talked about in prior commentaries, the AUDCHF has formed a small corrective rejection in the intra-day price action. This weak selling suggests thus far a) the bears aren’t pushing back heavy, and b) the bulls are still pushing up towards this resistance zone.
I’m holing a structural neutral bias while the 7545-7250 corrective structure remains. Only a daily close above mid-76 or the 77 handle would change my bias.
Rejections from here if they become impulsive may target 74 and 7250 which is the key structural support for the last 4+ months.
GBPUSD – Bearish While Below Corrective Structure (daily chart)
In line with our prior market commentaries, the pound has sold off heavily since breaking below the brexit lows and corrective structural support around 1.2840. For now the flash crash which resulted in a brief volatility spike down to 1.15 will remain a target for bulls.
Option players have actually started to place some solid bets on a move towards parity, so money continues to pour into the bear side.
I’m bearish while below 1.2850 on a daily closing basis. 1.25 may be a key level where bears look to re-establish shorts. Downside they’ll be targeting 1.15 and 1.10 so I’m looking to be a seller on strength.
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