Weekly Price Action Setups & Key Levels | Oct 29 – Nov 3
My Current Active Open Trades: USDJPY, EURCHF, CHFJPY, EURRUB, USDRUB, FTS, TRP, REMX, FXo EURJPY, FXo EURPLN
EURUSD – MT Corrective Structure Failed to Hold (Daily chart)
Since end of July, the EURUSD has been trading within a ~400 pip, MT corrective structure. This week we saw a break of the structure lows, resulting in continued selling towards 1.16.
The break of this structure suggests ST weakness and a continuation towards the LT support coming in at 114.60 is likely IMO if the bears are able to stay in control.
On weak pullbacks the old ‘bottom’ of this corrective structure at 1.17 is a highly attractive area IMO for ST bears wanting to short this pair in anticipation of a continuation south.
A strong break and close back above 1.17 on the other hand would suggest a false break which likely would attract a fresh round of bulls and open up for moves up towards 1.2050 again.
AUDUSD – Back Below LT Major SR Level, Potential False Break (Weekly chart)
Many major levels were tested or taken out last week across the majors, and the AUDUSD is no exception to this, closing the week well below the major support level ~ 0.7750.
Now, this is a very wide S/R zone IMO with very few weekly closes between 0.7650-0.7750 which means that conservative traders likely will want to see at least a close below the lower part of the zone before considering it broken.
Aggressive players on the other hand might already be looking for potential opportunities to short the pair on weak pullbacks into 0.7750.
A strong close back above 0.7750 would put 0.8000 back onto our radars again. Alternatively, if the price action continues to sell off, 0.7500 would be the next strong area of support to look out for IMO.
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