Weekly Price Action Setups & Trade Ideas | Aug 26 – Aug 31

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Chris Capre’s current live open trades: EURCHF, BIR, TLS

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EURUSD – False Break @ LT Support (Daily chart)

Price Action Context

After pulling back deeper into the wide multi-year support zone from 2015-2016, bulls stepped in with force ending last trading week, pushing price back above the LT resistance we have mentioned in earlier market commentaries, leaving a potential false break setup.

false break setup eurusd 2ndskiesforex

Trending Analysis

The strong buying, almost equal in strength compared to the preceding selling, pushed price back above the LT resistance, rendering our bias neutral for now. Looking to buy potential ST weakness into the LT S/R zone, which now should act as support again.

Key Support & Resistance Levels

R: 1.2000 – 1.2095
S: 1.1500 – 1.1575

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EURGBP – Daily Close Above Wide LT Resistance (Daily chart)

Price Action Context

After holding and rejecting higher prices for almost 10 months, on Friday, the pair closed above the wide and unclean LT resistance we’ve mentioned in earlier commentaries. Whilst this has the potential to become a false break, sellers did try to counter the last push into this resistance once, but failed, followed by strong buying breaking above the resistance, indicating bulls are in control for now.

forex key resistance level 2ndskiesforex

Trending Analysis

A sustained move above this resistance will render our LT bias bullish looking for potential long opportunities on pullbacks into the LT S/R zone. If price quickly snaps back below the lower boundary of the zone, we’re likely looking at a false break setup, opening up for shorting opportunities again, targeting the bottom of the LT range.

Key Support & Resistance Levels

R: 0.9270 – 0.9305
S: 0.8950 – 0.9030

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DAX – Holding @ Top of Bull Trend (Weekly chart)

Price Action Context

Corrective price action at top of multi-year bull trend that created a new ATH.

dax technical analysis 2ndskiesforex

Trending Analysis

Bullish while above the LT support, looking to buy on potential MT weakness into the key support zone.

Key Support & Resistance Levels

R: 13 400 – 13 600
S: 11 730 – 11 950

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