The EURUSD is approaching a significant support area at 1.1075.
It’s a confluence of support as it’s the intersection of a key horizontal level and the ascending channel support from the 2019 low.
This 1.1075 handle is one of two regions I pointed out on December 27th.
In that post, I mentioned how it would take a breakout from 1.1200 resistance or 1.1075 support for the EURUSD to regain momentum.
We saw the euro test that 1.1200 region during the last two trading days of 2019, but buyers failed to close the pair above it.
Now it’s the turn of 1.1075 to hold just as 1.1200 did last week.
But will it hold as support?
That should be the question on everyone’s mind.
If it does, we could see the EURUSD rotate higher once more to retest the descending channel top, which is now closer to 1.1180.
And if 1.1075 support doesn’t hold, it could signal the end of the euro’s short-term uptrend that began with the 2019 low last October.
It’s times like this that it pays to be patient, literally.
As of this writing, the EURUSD is in no man’s land, caught in a sideways range with little to no directional bias.
That said, the technicals are holding up beautifully.
The descending channel top (formerly at 1.1200) did its part last week, so I have no reason to think we won’t get a reaction at 1.1075 support.
I think we’re getting close to a breakout, but I stand by what I wrote on December 27th.
That it’s going to take a daily close below 1.1075 or above 1.1200 (now closer to 1.1180) to trigger a breakout.
Remember that I use New York close Forex charts. That means each 24-hour session opens and closes at 5 pm EST.
These charts are essential for trading price action as they give you five equal daily candles every week. Go here to get access to the charts I use.
A close below 1.1075 would target 1.0990, while a break above 1.1180 would expose the 1.1280 to 1.1300 region.
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Thanks for the update and well analysis mkt
You’re welcome, Emmanuel.
Thanks the great analyst
My pleasure.
Mr Bennett, your technicall analysis magic truly works bro, I am profitable because of you, keep shining.
Nice to hear! Keep up the good work.
So, do you advice one closes a short position until the breakout happens. Because I have been holding a short on the pair.
Thanks as always sir
Sorry, I don’t give that kind of advice. What you do with your capital is your decision.
Terima kasih Justine Bennett, semoga bermanfaat.
JUSTIN thank u so much for being our light in fired. Iam Gabriel from Uganda the East African continent. I started trading in 2017 around June. And this is what I call the beginning of my bad lack. I lost over $2000 yet it was borrowed. But despite all that when I came across daily price action all this have never been the same. Your set ups and the levels that u keep watching have made me able to pay for my tuition this semester. The only thing I miss the the members area and to get training from u. I will become a complete trader atleat. My nitemares are slowing turning to success.
Thanks for the update.