Weekly Forex Price Action Chart Outlook for November 19th – November 23rd 2012

Weekly Forex Price Action Chart Outlook for November 19th – November 23rd 2012
EURUSD – Euro/dollar trading just below resistance

The EURUSD is still moving lower overall, however last week we saw the market stage a modest rally after finding support at 1.2660 and then forming a bullish pin bar / fakey from that level. The market then rallied up into 1.2800 key resistance but was unable to close above that level last week. This week, if the market remains contained below 1.2800 we will expect the downtrend to remain intact. If the market rallies and closes above 1.2800 however, it would open the door up for more gains.

GBPUSD – Sterling/dollar ended last week with a small rally

The GPBUSD ended last week on a slight pop higher as the market found support at 1.5825 on Thursday and then pushed higher into Friday. We can see the downtrend is still intact in this market, but there’s potential for a continuation of this counter-trend rally early this week. If that happens, we will wait and look for a price action trading sell signal from resistance to rejoin the falling market.

AUDUSD -Aussie/dollar pin bar setup
The AUDUSD formed a pin bar at near-term support near 1.0300 on Friday as the market tried to move lower but ended up creating a false-break of that support instead. This week, if the market remains buoyant above 1.0300 we could see price pop higher from Friday’s pin bar, perhaps up towards the next resistance which comes in around 1.0435.

USDJPY – Dollar/yen remains very bullish, looking for buy signals
Last week, the USDJPY exploded higher from the pin bar setup off 79.20 support area that we first discussed in our November 13th commentary. Clearly, near-term momentum is up and this market has a lot of room to move higher as there isn’t any key resistance for quite a while. This week, we can look to rejoin this surging market if the market retraces lower into support. We would watch for a price action buy signal on the intra-day or daily chart time frame if the market does retrace lower this week.