Weekly Price Action Setups & Key Levels | Oct 2-7
My current active open positions: NZDUSD, Silver, AUDUSD (option) and SBer
AUD/CHF – Closing in on strong LLT
This pair has been in a long term corrective structure and is now again closing in on a major resistance zone between 0.7550 and 0.7600 that has been tested multiple times since the end of last year. Each test of the zone has so far resulted in 300+ pips sell offs.
Even though we see a build up towards the resistance zone, for now I am still maintaining a bearish bias because the zone has held for so long. Further build up and a continued squeeze towards the zone on the other hand could indicate a possible pre-breakout setup forming.
If the sellers manage to defend the resistance zone once more we should likely see a move towards 0.7300. If we on the other hand get a daily close above 0.7600 the next level to look for a short opportunity would be 0.77400.
XAU/USD – Corrective structure showing possible weakness
We’ve mentioned the price action corrective structure in earlier commentaries is still in play even though the rejections are getting smaller and hinting a possible breakdown of this structure. The bottom of the structure between 1300.00-1308.00, still presents a potential opportunity to go long in my opinion, keeping in mind that the sloping structure may continue to hold.
If the sloping structure continuous to play itself out and the corrective structure fails to hold, we may see a major unwinding in the gold bull run. But until we see a strong close below the major support zone I am maintaining a bullish bias on gold.
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