Daily Price Action

EURUSD: 1.2300 Is the Level to Watch


Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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After just ten trading days, the EURUSD is back to testing the “must hold” support level I mentioned on April 6. In fact, it’s already dropping below the level on an intraday basis.

What’s interesting about the last ten days is that buyers failed to challenge the 2008 trend line. You can see how the level has come under severe pressure beginning on January 25.

The fact that Euro bulls weren’t able to retest the 1.2440 area this time around could be a significant development. It may suggest that sellers are starting to regain some control here.

Of course, only time will tell. More specifically, today’s close at 5 pm EST (remember, I use New York close charts) will tell the story.

If the EURUSD closes the day below 1.2300, we’ll be staring at a break of a twelve-month trend line. It would also open the door to the next key support at 1.2160 with a close below that exposing the 1.2090 handle.

Alternatively, a daily close back above 1.2300 would keep the multi-month wedge pattern intact. It would also re-expose the 2008 trend line near 1.2440.

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EURUSD daily trend lines

Leave a Comment:

Chris says

Monday New York close will give us a clear picture. Thanks for the heads-up sir!

    Desmond says

    I think so too

    Inegbedion John says

    I was trying to withdraw money from my account edonot work

alex.andalibfard says

thank you for your very good setups.

Ian says

Thanks for that

serg says

thanks BRO good setups

Howard says

It can also be seen as a mar-apr flag on a dec- jan flagpole. The flag or consolidation is contracting around 1.23.

    Howard says

    Sorry, I meant feb-apr flag on a dec- jan flagpole

Ryan Guderian says

ECB meeting next week may break it loose. IMHO, I’m expecting normal dovish Draghi so the 1.216 level could be a quick reality by the end of the day of the meeting.

layigold says

Justin , thanks for this carefully thought-out analysis , it really helps others to have a focus in their own analysis of the market as well . I will consider selling the pair when the next daily candle closes below the trendline on the ground of seeing bearish price action signal .

Ahmed Obiora says

At the close of new york session on friday, the price was below 1.2300 with a bearish kind of pin bar candle on H4. Right before was a bullish pin bar on H4.
What should we expect on Sunday opening of market cum monday London session.

Roy says

nice work coach. Monday should be good for a possible position. thank you

Dan says

Something very interesting I noticed here . A bit of buying today tells me EUR is likely to have another go higher. The 1618 extension of the most recent 4H swing takes it to exactly 1.2555 which is the last recorded high on Feb 16.

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