Chart examples of forex price action at 52-week highs, lows

Support resistance levels that forex traders have no excuse for missing

I wrote a fairly comprehensive piece on 52-week highs previously. In this post, we look at examples of various forex pairs. From these charts, traders must expect the following when price nears 52-week highs and lows:

  1. Plenty of volatility as price tests and re-tests
  2. False breakouts aka bull trap/bear trap
  3. Reversal patterns such as head and shoulders, double tops and bottoms

As support and resistance levels, don’t expect 52-week highs and lows to be broken on first attempt.

 

Examples of forex price action at 52-week highs and lows

AUDNZD weekly chart

AUDNZD

 

  1. AUDNZD beats 2012-low for 5 weeks before turning bullish
  2. Price penetrates on second attempt after retracement
  3. Early 2014 sees double penetration below 2013 low at points 3 and 4; both fail
  4. Price makes year high after retesting and verifying 2012-low as support

 

AUDSGD weekly chart

AUDSGD

  1. 2013-low successful support; ’13 and ’14 lows are only 13.5 pips apart

 

AUDCAD weekly chart

AUDCAD

  1. 2012-low acts as resistance; tops July – October rally
  2. The same level comes into play again early this year; although level was penetrated, struggle at level with long price spikes is clear.

 

AUDCHF weekly chart

AUDCHF

 

  1. The very prominent feature of this chart is 2013-low support for shoulders in this reversal pattern
  2. The head is a brief penetration to new low that becomes bear trap
  3. Right shoulder confirms that 2013-low remains effective support

 

NZDUSD and EURUSD weekly chart

NZDUSD

 

  1. This pairs began 2013 with lots of volatility and a brief 1-week penetration above previous 52-week high
  2. Price spends 4-weeks above then fails
  3. Another failed break
  4. Recently price breaks 2013-high repeated but never closed above in any week
  5. The EURUSD chart below looks like a sibling of Kiwi

EURUSD

 

EURAUD weekly chart

EURAUD

 

  1. EURAUD has cleaner price action compared to NZDUSD; very brief failed breaks take place at each 52-week high (second failure tops a head and shoulders pattern)

 

Let’s do this exercise on CADCHF

We can see that 2012-52-week-low saw some support and then resistance at points 1 and 2. Question: What will happen at point 3 this time?

CADCHF

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Soh Tiong Hum is a forex trader, investor and co-founder of TerraSeeds Market Technician Pte Ltd. He is father of 2, business owner, webmaster, writer and speaker, seo amateur and webmaster. Together with Binni Ong, Tiong Hum created Tflow® Forex Course training individuals to trade forex with their own proprietary forex strategy. Come find Tiong Hum on Google+

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