Daily Price Action
Shares

EURUSD Breaks Twelve-Month Resistance, Targets 1.1540

Shares

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.

Want to see how we’re trading EURUSD? 

Click Here to join us and save 40% – Ends March 31st!

EURUSD falling wedge on the daily time frame

Leave a Comment:

32 comments
Justin Bennett says

Now you can get access to the same professional Forex charts I use.

Get access today:

https://www.blueberrymarkets.com/lp/dailypriceaction

These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

Reply
Adebayo saheed says

Thanks Justin…

Reply
VinhTran says

Thank Sir very much. I have followed and done exactly what I understand. A buy stop order has been activated.

Reply
Ben says

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

Reply
    Justin Bennett says

    I don’t understand the question. If you’re asking whether I can guarantee you profits every time, the answer is no.

    Reply
      Ben says

      No just if you can spot probable 110 pip moves and probable consolidations

      Reply
        Justin Bennett says

        Sure, we discuss probable setups in the member’s forums.

        Reply
Millard says

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…

Reply
    Justin Bennett says

    I think if you trade GBPUSD, you should trade it based on its own merits.

    Reply
      Saim Rana says

      Hi Justin Today GBP/USD again close at 1.32000???

      Reply
        Justin Bennett says

        This post is about EURUSD, not GBPUSD. And I have no idea where any market will close in six hours.

        Reply
Felipe Diaz says

I saw the break just the moment it happened… So great!

Reply
Syed says

Thank you, Sir,

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Mohsin says

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

Reply
    Justin Bennett says

    The two have shown to be inversely correlated in the past, yes, but I don’t trade the franc.

    Reply
Sam Nse says

Thanks!

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Joe says

Your analysis and emphasis has been on point. Thank you for sharing

Reply
    Justin Bennett says

    You’re welcome, Joe. Thanks for following.

    Reply
Praise says

Thanks for that again. I’m very grateful.

Reply
    Justin Bennett says

    You’re most welcome.

    Reply
EMMANUEL says

Thanks for sharing Justin, to me EURUSD breakout needs footing (retracement) to continue to go higher

Reply
    Justin Bennett says

    You’re welcome. Yes, that’s always key.

    Reply
Syed Talha says

Its more looks like a fake breakout as it is on 1.1355 and fundamentals in favour of usd strong,

Reply
Chuna says

Is like Eurusd was a fake break out?

Reply
Davy says

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.

Reply
    Justin Bennett says

    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.

    Reply
Errol says

oops, these things happen Justin. Got this one truly wrong !

Reply
Add Your Reply