Weekly Trade Forecast and Their Price Action Setups; October 16-20, 2017
EURUSD having pretty interesting price action this week. Without a doubt, EURUSD is bullish and it had a bullish weekly closing but settled below the resistance 1.1837 (low of Sep 14). But here’s the catch, EURUSD forming a Head & Shoulder chart pattern with a probability of more than 550 pips profit target!
So, we’ll wait till it breaks the major support 1.1713 (high of Aug 24, 2015), a ‘Core Price Action’ bearish breakout of 1.1713 will also be a breakout of the H&S neckline. Full potential target is below the 50% fibbo retracement where lies another major support at 1.1122, but the market should respect 1.1466 (high of May 15, 2015) which is another major support stay between the full target.
Our trade setup will be in 2 stages first 1.1713 to 1.1466 then 1.1466 to 1.1122 once we have core price action breakout of 1.1466.
However, EURUSD market is still in full bullish territory and it is likely possible to have a bullish breakout from this level. A core price action breakout of present resistance 1.1837 will push EURUSD towards 1.2041 (low of July 2012). And another bullish breakout from there would push EURUSD towards 1.2750 (low of March 2013) which is another major resistance.
GBPUSD maintaining the bullish ascending channel since the January 2017. GBPUSD is bullish above 1.3118 (low of the day after Brexit). We are holding long towards the immediate Major Resistance 1.3444 (weekly high of September 6, 2016).
A bullish breakout from 1.3444 would also be a breakout of a multi-year Lower High trend line (High of 2014 and high of Brexit). It would be the most significant bullish breakout in recent history. The next immediate resistance is 1.3835 then 1.4770. However, we expect a retest of 1.3444 from 1.3650 area (recent high) and then a strong bullish breakout. Remember this is a speculation. We will follow only price action when times comes.
You already know AUDUSD is one of my favorite pair if you follow me. It has reasonable price action range with better risk and reward ratio. Last week AUDUSD surge from the major support .7740 (High of February 23, 2017). We were long from the insidebar signals and hit our TP in 2 days. We will be long towards .7962 if the daily candle closing of Monday remains above the Friday’s closing.
However, it could also re-test the multi-year support .7833 and then surge back, which would be more profitable and logical.
We are also short at EURJPY (by Options), CHFJPY and long at GOLD.
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Notice: (All charts from FxPro, if you have a different broker you should update your support and resistance according to the date I mentioned, we do not promote fxpro anyway and we have no business with them, we use popular brokers randomly for our chart.)