On Tuesday I wrote how the EURUSD might be on its way to test the 1.1340/50 resistance area.
Friday’s session did just that.
EURUSD reached a session high of 1.1344 today before running into sellers.
However, a look at the daily time frame shows how our trend line resistance didn’t quite come under pressure this week.
I wasn’t expecting buyers to reclaim lost ground as fast as they did.
That means the trend line lies just above Friday’s high. But that also means next week may present a pivotal moment between buyers and sellers.
In case you’re new here, be sure to review my March 12th post to see why this resistance level is so significant.
It’s an excellent refresher for those who have been following along too.
EURUSD bulls have been knocking on the door for several months now.
You can see how we had two retests of this trend line in January and one in February.
It seems then that we’re due for a March retest.
That said, it’s likely going to take a catalyst of some sort to break the single currency free from this twelve-month level.
It just so happens we have a Fed rate decision and statement at 2 pm EST on Wednesday, March 20th.
And if that doesn’t get the job done, there’s a slew of euro event risk Friday morning in the form of PMI readings.
Or perhaps it will be an unscheduled event that kicks the euro out of its comfort zone.
Either way, I’m only interested in the technicals here.
Keep a close eye on this 1.1340/50 area as we enter next week. It will likely attract sellers, but a daily close (New York 5 pm EST charts) above it would be bullish.
Alternatively, bearish price action like that of February 28th and March 1st could send EURUSD back to 1.1200.
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