The EURUSD started Monday with more losses.
We saw the single currency slide past Friday’s low of 1.1086 before carving a session low of 1.1076.
The latter (1.1076) should be familiar to frequent readers of this site.
I’ve been discussing this confluence of support between 1.1070 and 1.1080 since December of last year.
As for the ascending channel below, it has had a permanent residence on my chart since November 5th.
The 1.1075 region is also a key horizontal level.
Notice how well the EURUSD has respected 1.1075 on the daily time frame since August of 2019.
Even the horizontal level in the chart below is in the exact same place as it was in Saturday’s forecast video.
If your daily time frame doesn’t look like mine, it’s most likely because you aren’t using New York close charts.
Use the “Download now” button below to get access to the same charts I use. These charts give you five 24-hour sessions each week.
So where to from here?
That’s going to depend on how the rest of this week plays out.
But one thing is for sure…
The EURUSD short-term uptrend is intact as long as the pair is above the 1.1075 area on a daily closing basis.
At the same time, though, the longer-term downtrend is also intact while EURUSD is below the descending channel top near 1.1200.
Again, frequent visitors to this site should be very familiar with both of those areas by now.
Just remember what I said in the January 14th EURUSD video.
Those getting frustrated at the latest consolidation should welcome it with open arms.
The longer a market consolidates and the more it “squeezes” within a terminal pattern like this, the more aggressive the breakout is likely to be.
And make no mistake, this is undoubtedly a terminal pattern.
The intersection of the shorter ascending channel and the longer descending channel will force the EURUSD out of its comfort zone eventually.
For now, though, EURUSD bulls live to see another day, which means the short-term uptrend remains intact.
We’ll see what tomorrow brings.