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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Great insight, thank you. Stay Blessed
You’re welcome, Matt. Glad you found it helpful.
Good Analysis my doyen. True to analysis on Sunday, the EURUSD pair is finding a support @ 1.1180. Please the descending trend line that extends from the November 2017 low intersection is far above 1.1050
Not according to my chart. In fact, it will probably be below 1.1050 if and when the market gets there.
That may probably take a while to get to the 1.1050 level
The last four downturns have taken two weeks or less to run 250 to 300 pips on average.
Not necessarily…..DXY is set to strengthed i.e towards the 99.13 as a minimum
I perfectly agree with Justin.. If you apply the Fibonacci levels on the lows to the highs the 1.618 which marks the end of this drop cycle should be at 1.0955
Obviously using the weekly timeframe
but a pin bar appears on h4?didnt you notice it?
I’m not even paying attention to the 4-hour chart here. As I wrote above, it’s all about the daily close.
There’s also a lot more to a trading edge than a mere pin bar.
Well done
Cheers.
nice one
Thanks!
Hi,
We’ve got a close above 1.1222, do u think is gonna go down below 1.1200 tomorrow?
I’m not sure what 1.1222 or tomorrow have to do with what might happen here.
Jus wanna hear ur opinion wether it might bounce to may be 1.1250 because d market closed above 1.1222 on 23 April..
Anything can happen.
You are asking too much out of Justin…….Listen, Ralph NO ONE can predict this time….the market dictates how and when to move and in what manner, sometimes it trends so it moves faster than other times when it goes sideways as this relies on human sentiment and other announcements…… but our best strategies will always remain a game of probability and we can NEVER always beat the market because no one is always right.
Correct. I always see others trying to figure out when something might occur. My only guess is that they trade binary options. But it’s always best to let the market figure itself out rather than jump the gun.
Well.. I aim for 1.11760 mark, as expecting some pull away, then going for 1.11800 for another short.. Great insight J
I meant pull back 🙁
I salute you and your hard work of analyisi
Cheers.