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EURUSD Longer-Term Outlook to Remain Bullish Above 1.1500

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The EURUSD appears to be in the final stages of topping.

Last week’s failure to reclaim the 1.1940 resistance area was the first sign that buyers were struggling.

Thursday’s pin bar looked promising, although its location on the chart wasn’t ideal.

Fast forward to today, and sellers are starting to take over once more.

The lower highs since September 1st hint at weakness, even though the 1.1700 area is still holding as support.

It’s going to take a daily close below 1.1700 to open up lower levels.

One such lower level is 1.1600, followed by 1.1500.

The latter is the top of the multi-year wedge I’ve discussed for months.

So, even though the EURUSD could lose another 150 to 250 pips from today’s price, the bigger picture is still bullish.

Of course, that could change, but I have to stay cautiously bullish as long as the EURUSD stays above the 1.1500 region.

However, a move below 1.1695 in September could carve a bearish engulfing month.

But as always, the monthly close will be key.

With all of this in mind, I’ll be on the sideline waiting to see what kind of chart pattern develops from this pullback.

Something constructive such as a bull flag could produce a buying opportunity, but not until a retest of at least 1.1600, maybe 1.1500.

EURUSD daily chart showing key support areas
EURUSD daily time frame

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8 comments
Justin Bennett says

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Nwosu Onyeka Nelson says

I strongly support this view of a bullish monthly outlook. I also think EURJPY conforms to this as well. Well done Justin.

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Mariaan Steenkamp says

Thank you Justin, much appreciated…

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Samuel says

Thanks.very good information.

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Davy says

What happened with your long position from a week ago?

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ali says

Thanks for the excellent update sir.

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    Lenny says

    He usually doesn’t say anything when trades bomb out. He also changes stuff without mentioning it so it often looks as though his analysis is a lot better than it actually is.

    Reply
Bernar Reynolds says

What’s happened to the weekly set-ups emails..?

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