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EURAUD Struggles to Gain Traction Above 1.5480

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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.

Despite its recent bounce, the EURAUD is still down 270 pips from the May 16 commentary where I pointed out a possible change in trend.

At the time, the pair had broken below a trend line that extends from the 2017 low. Sellers had also breached the 1.5770 horizontal level during the same session.

Since that time the Euro cross has respected each horizontal level with precision. Following the close below 1.5618 which I also illustrated on May 16, the pair sold off after reaching a high of 15619 on the 23rd.

That decline on the 23rd of May also took out the 1.5480 handle. The New York close (5 pm EST) at 1.5467 was the deciding factor there.

You can see from the chart below how this 1.5480 level has served as resistance since late last week. The May 24 session rallied above the level intraday, but buyers failed to close the price above it.

Fast forward to today’s session, and we can see that buyers are once again struggling to gain traction above 1.5480. As I type this the pair is carving a bearish pin bar that could present an opportunity early next week.

However, it all comes down to today’s close at 5 pm EST. A lot can happen between now and then, so this pending signal could turn out to be just another candlestick. We’ll see.

Another consideration is that this potential pin bar is forming on a Friday. As you may well know, volume tends to dry up at the end of the week. That alone can adversely affect the reliability of a Friday signal.

These are all things to keep in mind once the market opens next week. I may look for a short entry on a retest of the 1.5480 level on Monday or Tuesday, but it depends on how things unfold into the 5 pm EST close.

Key support comes in at 1.5340 with a daily close below that exposing the 1.5215 area.

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EURAUD pin bar on the daily chart

Leave a Comment:

5 comments
mobs says

hey sir i have a question if today end up forming a shooting star at resistance of 1.5480 is it safe to enter short next week monday

Reply
    Justin Bennett says

    I discussed that in the post. I won’t ever tell you to buy or sell; that’s your decision.

    Reply
Steve says

Hi Justin. Daily price closed below 1.5480 on May 23. Wasn’t today the retest?

Reply
    Justin Bennett says

    There have been several retests of 1.5480 as new resistance since the May 23 close. I’d say today is the first “rounded” retest of the level.

    Reply
Taneja says

Sir all your views are excellent and I look forward to get your mails
Thanks a lot
My best wishes and regards

Reply
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