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Weekly Price Action Summary – EURUSD Trapped in Tight Box Range

Markets Discussed Today in Today's Price Action Summary: EURUSD, CADJPY, EURJPY and GOLD.
Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and coach to thousands of aspiring traders from countries right around the world at his website
Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and coach to thousands of aspiring traders from countries right around the world at his website

Weekly Price Action Summary – Currencies and Gold

Markets Discussed Today: EURUSD, CADJPY, EURJPY and GOLD.

EURUSD Daily Chart

Intraday Engulfing Bars

This is a market we have been discussing quite a bit of late because it has been stuck inside a tight box range.

Find last weeks summary here.

After pushing off the support lows with a large rejection, price this week made its way into the range high resistance.

Previously price attempted to snap and breakout higher through this level, only to false break and slam back lower.

Whilst the range and box holds, we must trade what we see and the major levels in front of us.

This week we saw another re-test and intraday rejection of the major daily resistance with price forming Bearish Engulfing Bars = BEEB’s on both the 4 hour and 1 hour time frames.

Price has since stabilized and formed an inside bar on the daily chart and the resistance remains a large watch for price potentially breaking the range.

Daily Chart

EURUSD Daily price action chart

4 Hour Chart

EURUSD 4 hour chart

1 Hour Chart

EURUSD 1 hour chart

CADJPY Daily Chart

Test Long-term Resistance

Since forming a huge pin bar reversal on the daily chart down at the extreme lows, price has been moving aggressively higher.

As the zoomed out daily chart shows below; price has now moved into a longer term price flip level that in the past has been respected as both support and resistance.

Whilst the bulls have been in full control of this market and have shown no signs of giving over control, no market moves either straight higher or lower.

If price can pullback lower and into a value area of support, then there could be potential to trade inline with the strong momentum higher.

The 4 hour chart below shows the old resistance that could potentially hold as new support should price make a quick rotation lower.

Daily Chart

CADJPY Daily Chart

4 Hour Chart

CADJPY 4 hour chart

EURJPY Daily Chart

Bullish Engulfing Bar Breaks Higher

After making a sharp move higher at the start of the new year price action had stalled by the daily resistance level.

As we look at the daily chart now we can see that price has formed a bullish engulfing bar = BUEB that is closing above this resistance level.

If price breaks the high of this engulfing bar and continues its move, we could see a quick break into the overhead resistance where bearish traders could look for high probability short trade setups.

Daily Chart

EURJPY daily chart

GOLD Daily Chart

Price Continues With Trend

This is a market has been doing a heck of a lot over the past few weeks and months. Since looking for price to make a reversal down at the lows and watching the new trend higher closely, we can see that price is now in full force higher.

Price was having a real struggle to break the high or low of the engulfing bar on the daily chart (marked in chart below). Since then, price moved to the low of the engulfing bar, found support and continued with the next leg in the trend higher.

Price as I write this is testing a long-term resistance level. If this gives way we could see price make its ways to the major highs of 2018.

Daily Chart

Gold price action

Daily Chart

XAUUSD Daily chart

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