Price has been in normal “August mode.” This week I’ll continue to trade harmonic patterns with special emphasis placed on Potential Entry Zones (PEZ) on or near my Potential Price Action Levels (PPALs). I’ll explain the PPALs in a blog post later today. For now, just think of it as a price zone of interest, S/R, etc. My focus will be on tight stop loss orders and smaller targets. Here is the data for next week:

GBPUSD
Bias: Neutral

Potential Price Action Levels
PPAL1: 1.6677
PPAL2: 1.6770
PPAL3: 1.7075

PPAL4: 1.6455
PPAL5: 1.6244
PPAL6: 1.6033

EURUSD
Bias: Neutral

Potential Price Action Levels

PPAL1: 1.4406
PPAL2: 1.4574
PPAL3: 1.4684

PPAL4: 1.4221
PPAL5: 1.4078
PPAL6: 1.3902

USDJPY
Bias: Neutral

Potential Price Action Levels

PPAL1: 94.89
PPAL2: 95.60
PPAL3: 96.96

PPAL4: 93.79
PPAL5: 93.05
PPAL6: 92.39

Potential Price Action Level:  Many of you have asked questions about my reversal zones.  These levels are historic levels of interest to the market.  They do not represent a definite reversal.  They present us with a price to which the market has reacted before.  This makes the PPAL a good entry point for either direction.   On a breakout of that level, we can expect a pullback, on a reversal, we can expect pullbacks.  Either way, they are prices that I like to look at for price action and to reinforce the PEZ for harmonic patterns.

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Filed under: Market Forecasts

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