Is the EURUSD breaking out following months of consolidation?
Watch the video below to find out what I think.
Be sure to also scroll down for more commentary and an annotated chart.
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We have been waiting for the EURUSD to make a move for weeks.
The pair has been trending lower since late June, but the price action following the September 25 breakdown has been messy.
Not only that, but the consolidation of late has left me avoiding the EURUSD altogether.
However, if you’ve watched any of my recent videos, you know I haven’t been very bearish the euro.
In fact, I even wrote that the EURUSD has more room to move higher than lower back on September 6.
I even said in Saturday’s forecast video that “it’s going to take a move higher before we get that next leg lower”.
That’s because of the larger descending channel that extends from the August 2018 low.
All that said, it’s still going to take a daily close above descending channel resistance just above 1.1000.
That means a 5 pm EST close (using New York close charts) above 1.1000/5.
Without that, the EURUSD may return to recent lows until the pair can garner enough attention from buyers.
If euro bulls can close the pair above 1.1000/5 and then defend the area as new support, we could see the EURUSD push higher toward 1.1070.
That’s the next key resistance level I’ve been discussing for weeks.
A daily close above that would expose another key area we’ve had on our radar at 1.1200.
You can see how the 1.1200 region served as support between mid-June and July before flipping to resistance in the first half of August.
Alternatively, a daily close back below the 1.1000 level could keep the EURUSD suppressed a while longer.
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