EURUSD is range-bound following a 650 pip rally over the last few weeks.
That’s the headline here, not that the euro is a sell.
At least that’s my opinion.
I hear many traders talking about shorting the EURUSD because it’s overextended or that it’s a double top.
But that’s ill-advised, in my opinion.
Look no further than the monthly chart.
The chart above shows a breakout above a multi-year wedge or triangle, whichever label you prefer.
As mentioned recently, the top of that structure comes in around 1.1650.
Could this be a false break from the euro?
Of course.
Anything is possible. But as of today, I have no reason to suspect that the breakout above is false.
That said, I’m staying flexible in case any red flags crop up.
Near term, support comes in at 1.1700, followed by 1.1650.
To keep things simple, you can assume that the area between 1.1600 and 1.1700 is likely to attract buyers.
As I stated in Monday’s video, it’s going to take a daily close above 1.1900 to open the door to the 1.2090 area.
Disclaimer: I hold a EURUSD long position from 1.1299.
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