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Just two days ago, we discussed a EURUSD short idea.
At the time, the euro was trading above the confluence of support at 1.1250/60.
You can see the horizontal level in this area along with ascending channel support that extends from the May 30th low.
However, today’s sub 1.1250 close means that any retest of the area as new resistance is likely to encounter selling pressure.
Keep in mind that the area could be as high as 1.1270.
As long as EURUSD stays below 1.1270 on a daily closing basis, I favor shorting the pair for a move to the next key support at 1.1110.
The 1.1110 level triggered the bounce in late May and early June. It’s also the year-to-date low.
With that in mind, I expect buyers to take an interest in the event of a retest.
But another bounce from 1.1110 may only serve as temporary relief for the single currency.
As of now, the downtrend that began early last year is still very much intact.
I also don’t see any reason to think that sellers are tiring, especially after giving up the 1.1250/60 support area today.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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