Yesterday I commented on how EURUSD buyers weren’t backing down.
The level in question was falling wedge resistance from the March 2018 high.
I’ve commented on this wedge several times in recent weeks including the 12th and 15th of March.
I even warned EURUSD shorts on March 5th.
If you read through those commentaries, it becomes quite clear that I’ve been neutral EURUSD with a slightly bullish tilt.
That’s due to the direction of this wedge.
Because it’s a falling or descending pattern, it has bullish implications.
And in case you weren’t sure about my bias here, I even wrote that EURUSD may be about to break free 24 hours ago before Wednesday’s FOMC.
Here’s what I wrote:
I’m reasonably confident those events will give us the answers to our questions, and that the future direction of the euro will be clear by this time tomorrow.
All that said, if this week’s price action is any indication, the EURUSD may be about to break free from a twelve-month resistance level at 1.1360.
The “those events” in the quote above referred to Wednesday’s Fed rate decision and statement.
And break free it has.
The daily chart below says it all. With the EURUSD now firmly above twelve-month resistance, the bullish narrative is alive and well.
You may notice that I’ve cleaned up my chart quite a bit to only include the key resistance levels on the way up.
Feel free to revisit older posts for additional levels.
As for immediate support, I think there’s a reason to believe EURUSD will catch a bid in the 1.1400 region; perhaps just below it at 1.1390.
And as long as bulls follow through on Wednesday’s breakout, the first key resistance doesn’t come in until 1.1540.
But keep in mind that 1.1540 may only serve as temporary resistance.
A daily close above it could take the EURUSD all the way to the September 2018 high at 1.1815.
On the flip side, the pair would need to close below former wedge resistance (new support) near 1.1320 to negate the bullish outlook.
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Thanks Justin…
My pleasure.
Thank Sir very much. I have followed and done exactly what I understand. A buy stop order has been activated.
Cheers.
Hi Justin, if I join will you be able to show me 110 pip or more moves during the week and tell me when the price has a big chance to consolidate for a month or so? That would REALLY help me out! Tanks
I don’t understand the question. If you’re asking whether I can guarantee you profits every time, the answer is no.
No just if you can spot probable 110 pip moves and probable consolidations
Sure, we discuss probable setups in the member’s forums.
Hey Justin, I trade GBPUSD. Do you foresee EURUSD action affecting cable in the same direction? I’m never quite sure whether strength in one or weakness in the dollar is responsible for a move…
I think if you trade GBPUSD, you should trade it based on its own merits.
Hi Justin Today GBP/USD again close at 1.32000???
This post is about EURUSD, not GBPUSD. And I have no idea where any market will close in six hours.
I saw the break just the moment it happened… So great!
Cheers.
Thank you, Sir,
You’re welcome.
Good day Justin,
my question is regarding corelation of EurUsd and USdChf , is it compulsory to rise one pair and other goes down , whats your experience?
thanks
The two have shown to be inversely correlated in the past, yes, but I don’t trade the franc.
Thanks!
You’re welcome.
Your analysis and emphasis has been on point. Thank you for sharing
You’re welcome, Joe. Thanks for following.
Thanks for that again. I’m very grateful.
You’re most welcome.
Thanks for sharing Justin, to me EURUSD breakout needs footing (retracement) to continue to go higher
You’re welcome. Yes, that’s always key.
Its more looks like a fake breakout as it is on 1.1355 and fundamentals in favour of usd strong,
Is like Eurusd was a fake break out?
You Said you don’t trade news,but whats happend today with bad pmi’s your target is gone i think,more shorts for me.
Sure, and that hasn’t changed. I still don’t “trade the news”.
There’s a difference between trading the news and being aware of what’s on the news calendar.
oops, these things happen Justin. Got this one truly wrong !