The EURUSD is at a crossroads.
On the one hand, last week’s aggressive selloff combined with Monday’s close below 1.1900 looks bearish.
And on the other, the EURUSD appears to have closed back inside a descending channel shown below.
The pair did that on Tuesday.
I told DPA members yesterday that I was buying the EURUSD, which at the time it was near 1.1885.
I still have that position on today.
However, so far, EURUSD bulls haven’t done much.
The pair rebounded nicely from today’s low near that channel support, but they’re struggling to climb above the 1.1900 area.
And there is a good reason for that.
I mentioned the significance of the 1.1900 area last weekend.
Furthermore, notice how Tuesday’s high is 1.1915.
It’s no coincidence that 1.1915 is near Friday’s close and is also Tuesday’s high.
We’ll see if EURUSD buyers can breach 1.1915 on a daily closing basis.
If they can, I’ll be interested in adding to my long position.
If not, I’ll keep my position as is.
Above 1.1915, the EURUSD has to contend with 1.2000 resistance.
Alternatively, a close below the 1.1870 area would likely
Disclosure: I hold a EURUSD long position.