Weekly Forex Price Action Chart Outlook for September 17th – September 21st 2012
The EURUSD has been on a parabolic run recently as we can see from the daily chart below. Typically, after such a huge run higher we would expect some sort of retrace to the downside. However, as of right now we don’t see any obvious price action sell signals in this market to warrant a short entry against this strong uptrend. If the market continues higher, we do see some key resistance coming in near 1.3280 that would be a good level to watch for a potential 4 hour or daily chart sell signal. Otherwise, if the market rotates lower from current levels this week, we will look for price action buy signals from support to rejoin the uptrend.
The GBPUSD has been on a parabolic run higher recently, similar to the EURUSD. We can see this market has run into a key level of long-term resistance as of last Friday. Traders should keep a close eye on the price action near current levels and slightly above into that resistance zone marked on the chart below. If we get a large 4 hour or daily chart price action sell signal forming there we could see a significant rotation lower before this market moves higher again. Then, we can watch the support levels marked below for potential buy signals to rejoin the uptrend in this market.
The AUDUSD has made an impressive surge higher over the last seven trading days, moving up into the key resistance at 1.0612 last Friday. We can see that price pared gains on Friday and rejected that key 1.0612 resistance level, forming a counter-trend pin bar sell signal in the process. If this market can stay contained under this resistance early this week, we could see a move to the downside, perhaps into key support around 1.0400. If the market does move down into that support we would then look for price action buy signals forming there.
The GBPJPY exploded higher last Friday and broke above key 125.50 resistance finally. We would note the bullish rejection pin bar setup that formed last Thursday showing rejection of the dynamic support from the 8 and 21 day EMAs, just before Friday’s surge higher. From here, we are interested in buying this market on a rotation to support, pending confirmation from an intra-day or daily chart price action signal. There’s some near-term support to watch near 126.20 and then key support is down near 125.50.
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