Last Friday I discussed how EURUSD bulls were attempting a reversal above 1.1930. The area was a key pivot for the single currency between November 2017 and January of this year.
Then on Sunday, I mentioned how Friday’s close wasn’t convincing enough to call it one way or the other. Buyers did manage to end the week above 1.1930, but as you may well know these levels are better thought of as areas or zones.
That puts this area between 1.1930 and 1.1940. Notice the May 2 low at 1.1937 along with the May 8 high at 1.1938.
One way to get a feel for where bids and offers are positioned is through the use of pin bars, or long-tailed candles. Yesterday’s bearish pin bar from the 1.1930/40 area is a perfect example.
I pointed this out to Daily Price Action members on Monday at 4 pm EST, just one hour before the New York close. Today’s price action illustrates the significance of yesterday’s rejection from 1.1930/40.
Furthermore, we saw just a few moments ago how the EURUSD encountered a few buyers at 1.1830. This was the support level I pointed out on Sunday.
I’m short from Monday’s bearish pin bar just above 1.1930. I’ll be interested in adding to the position should sellers manage a daily close at 5 pm EST below the 1.1830 handle.
Key support below that comes in at 1.1710/15 followed by 1.1575. However, the distance between the current price and the 10 and 20 EMAs (mean) suggests that we could see some consolidation above 1.1830 before the next leg lower.