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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.
Click here to get access to the same charts I use.
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On Monday I explained how a break of the five-week range on the EURAUD between 1.5720 and 1.5870 could have broad implications. Since late last year, the Euro cross has carved what could be a 1,000 pip head and shoulders pattern.
I actually mentioned the pending formation several weeks ago, but the 150-pip range between 1.5720 and 1.5870 prevented the completion of the right shoulder.
That may be about to change. As it stands now, the EURAUD is trading 50 pips below the 1.5720 range support. However, as always, it’s going to take a daily close below the level to confirm the breakout.
If sellers get the job done, it will put the pair in a new range to start next week. Key support would come in at 1.5620, and the former range support at 1.5720 would become new resistance.
It would then take a daily close (New York 5 pm EST) below 1.5620 to open the door to the next key support at 1.5460.
Of course, if the pair breaks the five-week range this week, it would also put sellers one step closer to carving the right shoulder of the (pending) head and shoulders pattern. See Monday’s commentary for more on that.
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Wow! This is great , have been following you on this analysis . Thanks a lot for the insight .
You’re welcome.
Am grateful for this information
Cheers.
Yep. Daily close is key. I’ve been short here for a month. Patience is key.
Thanks Coach.
Spot on, Roy. Just like the EURCAD, sometimes it takes a tremendous amount of patience to see a market move in our favor. As long as the structure is intact and the idea is still valid, we wait.
Excellent analysis
Excellent analysis Justin.
Thank you!
MUCH appreciated and spot-on as always!
you’re one of the ones to have good analysis, really like the way you explain things. you make trading simple. keep it up
Justin
I want to thank you for showing me patience is key. You are a real star and can I say hero to me. You have helped me more than money can ever buy on your free material. I thank you from the bottom of my heart. Hpoefully one day I can help people like you helped me… And I will always give credit to you!!! May God bless you!!!
You’re welcome, Stefan. Great to hear that you’re finding the material so helpful. Thanks for the kind words!
Hi Justin. You told to watch always before the weekly timeframe (to see the general trend) and then the Daily TF but if the weekly one is choppy have I to follow the direction of Daily one? And for instance if the weekly timeframe trend is down and the Daily is up what do I do?
Always move with the larger time-frame as the trend is in their direction once the larger time frame is giving you enough info
Hi Justin,
I truly appreciate your work brother and the knowledge that you share with us. You rock man and thanks once again. Be blessed.
I must’nt be left out of appreciation The king of Forex analysis, more grace to your elbow
Thank Justin for your commitment to showing traders this way of analysis. It made trading very simple. Patience is entering my DNA. Patience is really a virtue for traders.
However, can you put some light on entry strategy on this breaks. I will be glad if you can.
My strategy is to enter from the next resistance. That way you are save.
Am learning more that I had not known on pairs and on FOREX trading.
Hi Justin
From one month I watching your comments . These comments are good and very useful for me.thank god and you sir because God shows you to me sir. One reguest please explain GBP JPY, EUR JPY, CAD JPY, AUD JPY these pairs how to see the residence and support sir or you mail me sir.
God bless you Justin. You are a great forex trader of our time.
Thanks for the kind words. Glad you’re finding the site helpful. 🙂
A grateful heart,you remain my best mentor.
Cheers. Thanks for sharing.
The condition is already meet, EURAUD closed far far below the 1.5720 . We are good to go.
Yep ismo. I’m in this for the long term. At least a few months.
Patience needed until the target region.
Danke Justin, immer wieder sehr gute Informationen von Dir!!!
Danke für Deine Arbeit!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Thanks for sharing us your wonderful knowledge !