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EURUSD is pushing to new four-month highs today.
If you saw Saturday’s forex forecast, you know that Friday’s close above 1.1420 was contingent on Monday’s open.
So far today, buyers haven’t disappointed.
However, as always, a daily close above 1.1420 is required to confirm the breakout.
That means a 5 pm EST close above 1.1420.
But a look at last week’s highs indicates that 1.1440 could be a factor too.
So, to play it safe, a close above 1.1420/40 is required to clear this resistance area on a daily closing basis.
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I will also be using that area to add to my long position from 1.1299.
My target for that position, as I told members earlier this month, is 1.1600 based on the weekly and monthly time frames.
Notice how 1.1600 is a confluence of resistance.
It’s a key horizontal level and the top of a multi-year wedge pattern that extends from the 2008 high.
Before that, though, buyers have to deal with the 1.1500 resistance level.
But as I stated above, EURUSD bulls need to secure a daily close above 1.1420/40 to open the door to higher prices such as 1.1500 and 1.1600.
Disclaimer: I hold a EURUSD long position from 1.1299.