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Watch the video below to see the latest on EURUSD.
And don’t forget to scroll down for more commentary and an annotated chart.
The EURUSD is getting volatile again.
After several sessions of sideways movement, the single currency is under pressure yet again.
I wrote about the 1.1060 resistance level in Sunday’s post.
One thing about volatility is that it often increases at turning points.
Funny enough, I’ve had to rewrite this entire post given the 100+ pip bounce that just occurred from the 1.0930 support level.
I also pointed out that area in Sunday’s video.
While those who sold EURUSD at 1.1060 were able to make a quick 100 pips if they were quick enough, I still dislike selling the pair for the longer term.
Some may argue with that, and I don’t blame them.
After all, the downtrend is still very much intact.
But as I wrote on Sunday, attempting to sell a market at the bottom of a channel is always a risky endeavor.
That’s the same descending channel I wrote about over the weekend.
Even if EURUSD were to break below that confluence of support below 1.0900, I wouldn’t be a seller.
In my experience, downward breaks of descending levels often result in a bear trap.
I certainly don’t want to be caught up in that.
I also still stand by what I wrote on the 6th that EURUSD has more room to move higher than lower.
Look no further than the chart above.
All in all, though, euro bulls need to clear that 1.1060 to 1.1100 resistance area if they intend to push EURUSD higher.
As long as that’s intact as resistance, we will see sellers come out in force.
But if this smaller descending channel does break, we could have a double bottom on our hands which would expose the 1.1200 handle.