Weekly Price Action Setups & Key Levels | Oct 22-27
My Current Active Open Trades: EURCHF, CHFJPY, EURRUB, AUDUSD, FTS, TRP, REMX, XHB, FXo EURJPY, FXo EURPLN
NZDJPY – False Break at MT Key Resistance Followed by 200 Pip Sell Off (4h chart)
During the week, we saw a pre-breakout forming against the MT key S/R level mentioned in our member commentary last Sunday.
Initially this structure was followed by a breakout, which was only short lived as bears quickly pushed price back down below 80.50, followed by a 200 pip sell off, breaking through and closing below the minor ST support @ 79.30.
Congratulations to those that a) attacked this level with a stop wide enough or b) were able to successfully take advantage of the false break setup, as your trade should be in good profit right now.
Our MT/ST view on the pair has not changed, and this bearish move communicates that ST the sellers are more active than the bulls and we might be looking at a tightening of the price action MT.
On a possible continuation south, solid supports are coming in at 78.30 and 76.30.
To the upside, 80.50 is still the closest notable resistance IMO.
GBPNZD – Testing Major LT Resistance (Daily chart)
After we mentioned the MT corrective structure in our member commentary on the 8th of October, price climbed to the top of the structure, got rejected by the bears who pushed price back to the bottom again.
Bulls came back in with force around 1.8345 and launched price 600 pips higher within 4 days. Congratulations to those that were able to catch and ride this massive bullish momentum.
Price has now arrived at a major resistance zone and this is the first time since mid-2016 that the GBPNZD has closed above 1.89 on a weekly closing basis indicating that the sellers likely have their orders deeper (higher) into the resistance zone.
Whilst price is trading within/below this resistance zone I maintain my bearish bias with closest MT supports coming in at 1.8700 and 1.8330.
A strong close above 1.9050 on the other hand will change my bias to bullish, with the next LT resistance waiting around 1.93.
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