On Monday, we looked at a descending channel on EURUSD that was likely to send the pair higher.
However, buyers still had work to do.
The euro was trading in the middle of that channel, and it was unclear whether we’d get a retest of channel resistance or 1.1150.
Fast forward to today, and the EURUSD is leaning on channel resistance near 1.1290.
That’s the level that buyers need to break to send prices higher.
Just keep in mind that we need a daily close (5 pm EST) above 1.1290 to confirm the breakout.
Until then, this consolidation will continue.
If buyers can secure a daily close above 1.1290, it would open the door to the next key resistance at 1.1350, followed by 1.1420.
Here’s how things look from the monthly time frame:
After hovering above wedge support near 1.07/1.08 for months, the EURUSD looks ready to test resistance near the 1.1600 handle.
A breakout from the channel below could trigger such a move.
Key support at the time of this writing comes in between 1.1150 and 1.1170.
That’s the same area I pointed out on Monday.
Key resistance remains 1.1290 for now with a daily close above that exposing 1.1350, 1.1420, and 1.1500.
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