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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
The EURUSD was pressuring 1.1060 again on Monday after last week’s rejection from the area.
You can see how buyers kept the pair above this region throughout August.
And based on last week’s price action, we know sellers are now defending the 1.1060 area as new resistance.
Monday’s session also encountered offers in that 1.1060 zone.
However, here’s what should be alarming if you’re bearish the EURUSD.
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Notice how, despite staying below the 1.1060 handle on a daily closing basis, the pair hasn’t backed down.
Buyers are still pressuring the level even after Thursday’s long upper wick.
That signals an increase in demand.
Market participants aren’t allowing EURUSD to drop, at least not yet.
I’m not insinuating the euro will break higher.
I don’t know where the pair is going; nobody does.
But just like I wrote on Sunday, I think attempting to sell the EURUSD given the increase in demand since the 3rd is risky.
Perhaps a close below the 1.1020 level would cause buyers to back down.
Until that happens, though, traders need to respect the potential for a higher EURUSD.
In summary, the downtrend is intact while price is below 1.1100, but recent buying around 1.1060 creates a stalemate and hints at a possible turn higher this week.