Daily Price Action
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EURAUD Enters New Range Above 1.5620

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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.

The EURAUD has been tentative so far this week, especially when compared to Friday’s selloff. That isn’t surprising though, at least not for those who have been following along.

Despite having broken free from a five-week range on Friday, sellers have run into another floor at 1.5620. I mentioned this level a couple of times last week including in Sunday’s forecast.

Monday’s session was the first to catch a bid here, but Tuesday’s long lower wick illustrates the demand in this region.

Whether or not this will trigger a retest of former range support at 1.5720 as new resistance is anyone’s guess. What I do know is that attempting shorts while the EURAUD is above 1.5620 on a daily closing basis (New York 5 pm EST) is probably a bad idea.

The way I see it, there are two options for getting short here…

The first would involve a rotation higher and retest of former range support at 1.5720. Whether you wait for bearish price action such as a pin bar or not would be up to you.

Option number two would materialize in the event buyers are unable to force a retest of 1.5720. In that case, a daily close below the current support level at 1.5620 would open the door to the next key support at 1.5450/60.

Of course, if you don’t share my bearish outlook, you could look to enter long at support and exit at resistance. It all depends on your bias here, as well as your trading style.

As for me, I’ll wait for one of the two short ideas above to materialize. Keep in mind too that the EURAUD’s pound counterpart (GBPAUD) confirmed what I suspect is a 1,200 pip head and shoulders pattern earlier this week.

Given that the two move in tandem more often than not, that confirmation on the GBPAUD could be an early warning sign for the Euro cross. As always, time will tell, but I certainly won’t be buying this one anytime soon.

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EURAUD new daily range

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25 comments
Siyabonga Mkhize says

Thank you Justin

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    Justin Bennett says

    You’re welcome.

    Reply
MOLAN says

Tnx coach

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    Justin Bennett says

    My pleasure.

    Reply
Chukwudi Louis Utazi says

Thanks a lot, Your the Best

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ducmxd says

thanks justin so much

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Emuobo Agbahovbe says

As usual very apt! Thanks.

Reply
    Justin Bennett says

    You all are welcome.

    Reply
Fabrizio says

Hi Justin. I see that daily chart is short but the weekly chart is a little choppy. Which is your opinion on the matter ? Is only to consider the daily chart ?
Thank you a lot and cheers

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Chris says

Looks like it might retest the former range support, as it stands that is where the mean is at. Only time will tell! Thanks again…

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Trond Midtun says

Hi Justin. I find your site 3 or 4 weeks ago. And i am very happy that i find it. You are a good man who share all this for us, for free. But i want to be a part where all your studends are. When will you open for me? Have nice evening, keep up all the good work you doing! Best regards Trond

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    Justin Bennett says

    There’s an offer to join at the end of the webinar here:

    https://dailypriceaction.com

    You can also email me using the contact form on this site and I can send you the direct link.

    Reply
olayinka says

excellent analysis. thanks for the guidance.

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    Justin Bennett says

    Cheers. You’re welcome.

    Reply
Felino Ignacio says

As usual Justin,i have been following your analysis and improved my way of trading,taking correct timing/risk management and above all patience.
Thank you very much,looking for your mentor ship upon having sufficient budget.

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    Justin Bennett says

    Glad to hear that, and congrats on your progress!

    Reply
Hatinder says

Well explained sir

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derrick says

thanks so much sir

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Fathin says

it looks like it’s going to form a bearish pin bar 🙂

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Nasir Shah says

Thanks Justin for your valuable foresight

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Euphemia Nwachukwu says

Thanks Justin for the analysis on GBPAUD which i am already making some pips profit. Remain blessed.

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Brian says

Yet another excellent report on your views. I am reasonably new to your website and can’t praise it enough and would like to take this opportunity to thank you Justin for all your invaluable lessons and knowledge. I really love how clear and understandable your articles are. I am new to the price action way of trading but by following your approach everything seems so much clearer. Once again I have learnt so much and can’t thank you enough.

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    Justin Bennett says

    Hey Brian, glad to hear that! I’ve always tried to keep it simple, both in my way of trading and teaching, so it’s good to know it’s working. Cheers.

    Reply
Raymond says

Thank you

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