EURUSD Breaks Out but Daily Close Is Key

Written by Justin Bennett

Trusted by 100k monthly readers

Last Updated July 6, 2020

Forex trader since 2002

Written by Justin Bennett 

Forex trader since 2002

100k monthly readers

Updated July 6, 2020


EURUSD is following the storyline I wrote about on June 29th.

In fact, I first mentioned the possibility of a descending channel in the June 28th weekly forecast.

Given the rally between May and early June, this descending channel looked like a bull flag pattern.

Last Thursday tested the top of the channel near 1.1290, but the market wasn’t quite ready to break free.

Friday’s action was limited with the 4th of July US holiday inbound.

However, now that volume has picked up again, the EURUSD is breaking free and is currently trading well above that 1.1260/70 area I mentioned on Sunday.

As always, it’s going to take a daily close above 1.1260/70 to confirm the breakout.

But that doesn’t mean you couldn’t have bought in last week.

The way the pair was hovering just below channel resistance suggested that a break higher was imminent.

Traders also shouldn’t forget about the multi-year wedge pattern.

EURUSD monthly 7.6.20
EURUSD Breaks Out but Daily Close Is Key 3

I’ve been showcasing the structure above in each weekly forecast, as it’s still an incredibly significant pattern, in my opinion.

As of now, the top of that multi-year wedge comes in near the 1.1600 handle.

Before buyers worry about 1.1600, though, they need to get through 1.1350, 1.1420, and 1.1500.

EURUSD bulls are testing 1.1350 as I type this.

I do expect sellers to defend that area, particularly considering that today’s session was up 100 pips at session highs.

That means the new battleground will take place between 1.1270 and 1.1350.

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EURUSD daily 7.6.20
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Justin Bennett - founder of Daily Price Action

About the author

Justin Bennett started trading in 2002, and let's just say it was a bumpy ride. But in 2010, he had his "aha" moment once he ditched the indicators and focused 100% on price action. Justin has built a following of 100,000+ monthly readers and taught thousands of traders using his simple, no-nonsense approach. He's been highlighted as a top trader by Stocks and Commodities Magazine and regularly featured by Forex Factory next to publications from Bloomberg and CNBC. ...Read More


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