Weekly Price Action Trade Ideas – 20th to 25th Jan 2019
Markets Discussed Today: AUDUSD, EURUSD, EURJPY and GOLD
AUDUSD Daily Chart
Price Flip and Test
In our last charts in focus price action had made some large moves in a lot of the Asian pairs including the Aussie.
Price had just climbed into an important level and was about to make a potential test or break.
The two charts below shows this test, pause with the inside bar and break.
Price has since flipped at this level again as we have discussed a number of times recently with price forming a small Bullish Engulfing Bar at the old resistance and new support.
The best plays when price breaks out quickly through these price flips, is often to move to the smaller time frames and look for a quick pullback and re-test to see if price will hold at the old resistance and new support with a price action trigger signal such as a pin bar or engulfing bar.
On the AUDNZD we had a Bearish Engulfing Bar that sent price only lower marginally into the midway point of the previous box area and continued on higher.
EURUSD Daily Chart
Potential Test of Range Support
Price has been stuck in a ranging box since October last year in this market.
It was looking like price was going to breakout higher, through the range high resistance and we could then potentially get some free-flowing trading.
Price however snapped lower as quick as it bounced out, creating a false break of the range highs and it could now look to test the support level of the range low.
Similar false break trades could fire off at this support level, or if price breaks out; as just discussed on the AUDUSD, aggressive traders could look for quick breakout and re-test trade setups.
EURJPY Daily Chart
Daily Resistance Looks Key
After firing off the huge reversal down at the extreme lows, price action has been stopped in its tracks at the major daily chart resistance level.
Price has been testing this level for the past two weeks and is still looking for a decisive move.
A break higher and price could quickly move from the 125.00 to around the 126.60 area. A break lower could see price continue the momentum that was building before this large post-Christmas move occurred.
GOLD Daily Chart
Price Yet to Break Engulfing Bar
Since rejecting higher prices and forming the BEEB on the daily chart, price has stalled.
I have attached a zoomed in daily chart below highlighting both the BEEB and the windup, showing how even though price has made a move lower in recent days, we still have not seen a break of the engulfing bars high or low.
Price in recent times has been trending higher after moving off the base lows.
If price pulls back lower, the next support level comes in around 1266.00.
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