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The EURUSD confirmed my suspicions on Monday.
I’ve written about the 1.0990 support region for several weeks.
I also pointed out how 1.0990 is actually a confluence of support in Saturday’s Forex forecast video.
As such, I stated that I was not interested in selling the EURUSD.
In fact, based on Friday’s bullish engulfing range, the euro looked more like a buy than a sell to me.
So that’s exactly what I did.
I posted my EURUSD long entry in the member’s area this morning when the pair had just gone positive on the day around 1.1024.
My targets here include 1.1070 and 1.1170.
Of course, I had no idea the EURUSD would reach my first target so quickly.
It’s actually unfortunate that the pair moved as fast as it did, as I was only able to get a starter position on.
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From here, I do expect sellers to defend the 1.1070/80 area just like we saw in November.
But I do think EURUSD bulls stand a good chance of carrying the single currency higher over the coming sessions.
That’s because Monday’s rally looks similar to what happened here between the 16th and 18th of October.
There’s no way to know for sure, but buyers appear to be back in the driver’s seat, at least for now.
Keep in mind, however, that the longer-term trend is still bearish.
Even the intermediate trend is pointed lower.
So while we could see this latest rotation into 1.0990 become a new higher low in the short term, it doesn’t necessarily mean the pair has hit a long term bottom.
For now, it’s going to take a daily close above 1.1070/80 to expose higher levels, including 1.1170/80.
Alternatively, I would view a return to channel support near 1.1010 as a sign of weakness.