The last time I wrote about EURUSD was on September 26.
At the time, we were interested to see whether the 1.0900 area would serve as key support or trigger the next leg lower.
If you watched that video, you know I wasn’t interested in selling EURUSD.
I mentioned the same thing in Saturday’s forecast video.
The fact that the single currency was resting on descending channel support from 2018 meant that any downside would be limited.
We saw the euro weaken a bit after that video, but not by much.
In fact, the lowest (daily) closing price was 1.0899 or just one pip below the 1.0900 support handle I mentioned in last week’s video.
Since then, EURUSD has clawed back over 100 pips.
The pair is even testing the 1.0990 resistance area as I type this.
Remember that 1.0990 was the next key resistance level given how it served as support in mid-September.
You can see how the EURUSD is having some trouble at 1.0990 today.
However, I’m still not interested in selling the single currency.
I still believe that the pair has more room to move higher than lower.
A look at the swing highs and lows since late 2018 tell me that much.
Again, watch my recent videos if this is at all unfamiliar to you.
That doesn’t mean I’m bullish EURUSD over the longer term, but I do think the pair may need to correct higher before the next leg lower can materialize.
I also think that as long as EURUSD is trading between 1.0900 support and the descending channel top near 1.1020, the pair is going to be a difficult one to trade.
It’s going to take a daily close above that 1.1020 area for buyers to gain some momentum.
Such a break would also expose 1.1070 and perhaps the 1.1200 area.
As long as channel resistance is intact, though, the euro is going to struggle to garner much attention from would-be buyers.