Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
EURUSD is approaching a key test at 1.1180 yet again.
I wrote about the likelihood of a move lower this week in Sunday’s forecast.
Last Thursday’s selloff appeared to have extinguished the short-term bullish momentum that began on April 2nd.
Sure enough, today’s session has taken out last week’s low at 1.1226.
The EURUSD is also just 20 pips from the 1.1180 support level.
Given the lower highs of late and the false break of trend line resistance on March 20th, a break below 1.1180 seems likely.
However, I’m going to need to see a daily close below 1.1180 before I begin watching for a selling opportunity.
The “daily close” refers to 5 pm EST when using the New York close charts I use and recommend.
Until the euro clears the support level on a daily closing basis, we should expect to see buyers defend it.
My target following a break below 1.1180 will be the 1.1050 region.
There is a descending trend line that extends from the November 2017 low that intersects with the 1.1050 area.
Here it is on the weekly time frame:
That could become significant if EURUSD sellers can secure a close below 1.1180.
Don’t be surprised if we see another bounce from support, though.
Buyers aren’t likely to go down without a fight, especially when dealing with an area that represents a multi-year low for the single currency.
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