Daily Price Action
Shares

EURAUD: Confluence of Resistance Seen at 1.5770

Shares

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 style charts I use on this website.

Since February 2017, the EURAUD has been in an uptrend. The higher lows and higher highs tell us that much.

However, Wednesday’s close punched a sizable hole in that narrative. Not only did sellers take out the 1.5770 horizontal level, but they also took out the trend line that extends from the 2017 low.

Yesterday’s breakdown leaves us with a confluence of resistance in the 1.5770 region. As such, I suspect any retest of this area as new resistance will attract an influx of selling pressure.

One reason I like the EURAUD here has to do more with the well defined horizontal levels than anything else. In addition to 1.5770, market participants have carved other obvious levels such as 1.5620 and 1.5480.

I always like to see a market respecting key areas before considering an entry. Breakouts from distinct technical patterns can be profitable, but only if you can identify probable targets.

In the case of the EURAUD, the first target comes in at 1.5620. Of course, that depends on whether or not sellers can successfully defend the confluence of resistance at 1.5770.

As long as the 1.5770 area holds as new resistance on a daily closing basis (New York 5 pm EST), I’ll remain cautiously bearish the EURAUD. The reason I’m staying particularly cautious here has to do with the uptrend that’s been in place for over a year.

Alternatively, a daily close back above the 1.5770 area would negate the bearish outlook and re-expose 1.5890.

Want to Learn How to Swing Trade?

Click Here to Get The Ultimate Forex Swing Trading Cheat Sheet

EURAUD daily time frame

Leave a Comment:

7 comments
Dayo says

I would like to if you have any affiliation to “Free50pipsaday” – a free signal-providing service as well as “Fx Classic Premium Signal” – a paid service both claiming to be operating under your name. Kindly clarify before I subscribe to the premium servive, please. Thanks

Reply
    Justin Bennett says

    No, I’ve never heard of either one of those and will be reporting both to Telegram.

    Reply
jay says

how about gbpusd ? please analysis it. thanks

Reply
    ANETOR IBIKUNLE says

    GU Seems to be on a Tight Range. Although here on 4hr Its forming an Expanding Wedge. So watch out for Breakout. Thanks Justin!! For This Good Work. It Feels So Good to be Back to My trading. Lol!

    Reply
ab says

its sideways on de weekly

Reply
Sphamandla says

Hi Justin Bennett, how can get this analysis direct in my whatsapp everyday please , here is my number: 0722883244 thank you.

Reply
Sera m says

Gbpusd seems to be in a range..

Reply
Add Your Reply