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EURUSD: Are Buyers Back in the Driver’s Seat?

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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.

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.

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EURUSD bounce from the confluence of support

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7 comments
Justin Bennett says

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Eliezer Andino says

I was already in a short position since Friday, I got fooled on the false breakout. Did the report make a difference in the volatility of the euro usd, or that was what we were expecting anyway. It was not doing much until we got the ism/pmi on the usd this morning?

elly

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Liam says

Hi justin

Just wondering if the price breaks a support/resistance level are you then only waiting for a retest to take a trade or do you still have to wait for a buy/signal
Any help is appreciated

Liam

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Prashant Agarwal says

good manufac/empl numbers from EU combined with bad manufac numbers from US pushed the euro fast to 1070. next directional push might come from ADP / NFP this week .. easier to short euro from 1070 back to 1000 but depends on data.

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pips hunter says

thank you brother

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Vũ Văn Nam says

Could you anlytic USDJPY in you Video, TKS

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Tseliso Putsoa says

your analysis is 100% accuracy, you trade swing-trade, since i follow your orders i can see a light through, thank so much for sharing with us.

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