Weekly Price Action Trade Ideas – 3rd to 7th Feb 2020

Markets Discussed in This Week’s Trade Ideas: GBPUSD, USDCHF, EURAUD and AUDUSD.

 

Note: We Use Correct ‘New York Close 5 Day Charts’ – You can read about why we use these and how to download the correct free charts at Correct Free New York Close Demo Charts

 

GBPUSD Daily Chart

Inside Bar + Engulfing Bar Combo Holds Support

In last week’s trade ideas we discussed the major daily support level and if it was going to be able to hold. We had been seeing weaker rejections each time the support was being tested.

The price action clues were crucial in this market. Price was not able to make a solid break and close below the daily support. Instead, it first formed an inside bar and followed that up with a clear-cut bullish engulfing bar to sent prices back higher.

If price can clear the swing high as shown on the daily chart below, then the extreme daily chart high could quickly come into play.

Daily Chart

 

USDCHF Daily Chart

Clean Bearish Pin Bar

Price action on the daily chart of the USDCHF has now sold off lower after forming a very solid pin bar reversal at the recent swing high resistance.

The short term momentum in this pair has been lower in recent times and this pin bar was at the swing high where price made its last sell off lower.

Price is now retesting the swing low and where it most recently found support.

This looks to be a key level for the upcoming sessions. If we get a break, then it could give way to lower prices and potential short trades.

Daily Chart

 

EURAUD Daily and 4 Hour Charts

Watching for Any Weakness After Breakout

Price has now successfully broken out of the major daily resistance level that we were watching closely last week for a potential breakout.

This was a large and aggressive breakout with price forming two huge daily candles after price confirmed the break.

This is common when price breaks out of such a key support or resistance level. 

As the 4 hour chart shows below; we have a minor price flip level that could act as a new support for the move to potentially continue should we get any rotations lower.

Daily Chart

4 Hour Chart

 

AUDUSD Daily Chart

Major Support Now Comes Into Play

Price on the Aussie has been hammered lower in recent times and as the daily chart shows below the major daily chart support could come into play in the next few sessions.

We have not seen a pullback or rotation higher for some time and it would not surprise to see price at least pause at this support level.

Super aggressive counter trend traders could watch for potential bullish price action clues. Trend and momentum traders could watch this level for a potential break and continuation of the recent sell off and for new short trades to eventuate.

Daily Chart

 

Trade Ideas Note: All views, discussions and posts in the ‘charts in focus trade ideas’ are the view of Forex School Online and are not recommendations or trading advice. All posts are general in nature and are not advice to buy or sell.

Note: We Use Correct ‘New York Close 5 Day Charts’ – You can read about why we use these and how to download the correct free charts at Correct Free New York Close Demo Charts

 

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