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EURAUD Breaks Five-Week Range, but Daily Close Is Key

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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.

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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EURAUD new range daily time frame

Leave a Comment:

28 comments
Chukwudi Louis Utazi says

Wow! This is great , have been following you on this analysis . Thanks a lot for the insight .

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    Justin Bennett says

    You’re welcome.

    Reply
fatima baksh khan says

Am grateful for this information

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    Justin Bennett says

    Cheers.

    Reply
Roy says

Yep. Daily close is key. I’ve been short here for a month. Patience is key.

Thanks Coach.

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    Justin Bennett says

    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.

    Reply
Tinotenda Muchenje says

Excellent analysis

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Dark says

Excellent analysis Justin.
Thank you!

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MIMI says

MUCH appreciated and spot-on as always!

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nkhi says

you’re one of the ones to have good analysis, really like the way you explain things. you make trading simple. keep it up

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Stefan says

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!!!

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    Justin Bennett says

    You’re welcome, Stefan. Great to hear that you’re finding the material so helpful. Thanks for the kind words!

    Reply
Fabrizio says

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?

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    Pierre Mifsud says

    Always move with the larger time-frame as the trend is in their direction once the larger time frame is giving you enough info

    Reply
Joki says

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.

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MOLAN says

I must’nt be left out of appreciation The king of Forex analysis, more grace to your elbow

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Yinka says

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.

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    Olorunsola Tolu says

    My strategy is to enter from the next resistance. That way you are save.

    Reply
John Kamau says

Am learning more that I had not known on pairs and on FOREX trading.

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Kannan says

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.

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FELIX GREAT says

God bless you Justin. You are a great forex trader of our time.

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    Justin Bennett says

    Thanks for the kind words. Glad you’re finding the site helpful. 🙂

    Reply
Prettyemem Mfon Udo says

A grateful heart,you remain my best mentor.

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    Justin Bennett says

    Cheers. Thanks for sharing.

    Reply
ismo says

The condition is already meet, EURAUD closed far far below the 1.5720 . We are good to go.

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    Roy says

    Yep ismo. I’m in this for the long term. At least a few months.

    Patience needed until the target region.

    Reply
Detlef says

Danke Justin, immer wieder sehr gute Informationen von Dir!!!
Danke für Deine Arbeit!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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Jackie Tran says

Thanks for sharing us your wonderful knowledge !

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