Daily Price Action
Shares

EURUSD Caught Between Support and Resistance

Shares

The EURUSD is coming off the top of a descending channel I’ve mentioned several times, including the December 30th commentary.

The pair’s failure to close the day above that 1.1200 area on the 31st meant that a pullback was likely.

Sure enough, the euro is off its recent high by nearly 70 pips and is also retesting the 1.1175 region.

Notice how 1.1175 held the EURUSD back between October and December.

Will it hold as support?

That’s anyone’s guess. As always, it’s going to come down to today’s closing price at 5 pm EST.

If the EURUSD can stay above 1.1175 on a daily closing basis, the area will remain intact as support.

However, a daily close below 1.1175 would hint at a deeper pullback from the euro.

A close below 1.1175 would also expose the confluence of support at 1.1075.

So it seems the EURUSD remains indecisive even with a new year upon us.

But that won’t last forever.

At some point, the pair will be forced to make a decision.

Either break above the descending channel resistance near 1.1200 to offer a long opportunity or close below the 1.1075 support area to attract shorts.

I think the EURUSD is getting close to breaking out, but we aren’t there yet.

Want to watch the EURUSD video I just released in the member’s area?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in January!

EURUSD ascending and descending channels

Leave a Comment:

6 comments
Justin Bennett says

Want me to help you become a better Forex trader?

Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 3,000 members, daily videos of trade ideas, direct access to Justin, and much more!

Save 40% on a lifetime membership in January!

Reply
Emeh Matthew says

I think the Eurusd is resting in confusion, but like you said, this will not last forever. In my own opinion, we should allow the sleeping dog to lie

Reply
Sezeniyu Abu says

I think the EUR is still fighting to recover from the BREXIT confusion. We just have to wait and see how it plays out.

Reply
ali says

thanks for the update sir justin.

Reply
Anthony Orode says

Please some one should advance me on what to do right now bcos am confused

Reply
praise says

thanks for that analysis sir.

Reply
Add Your Reply