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The EURUSD has been trending higher nicely since coming off of 1.0990.
The pair even carved a bullish engulfing candle on November 14.
Following that low on the 14th, the EURUSD rallied just over 100 pips as of Monday’s high.
If you’re a frequent reader of this site, you know how significant the 1.1070 level has been since August.
Notice how EURUSD closed just above that level on Tuesday.
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But the 1.1078 close doesn’t mean that 1.1070 is all of a sudden going to attract buyers and push the pair higher.
Sure, it may happen, but these levels are often zones or areas rather than exact prices in the market.
If you go back to the daily closing prices in August and again in late October, you’ll notice that most of those occurred around 1.1077.
With that in mind, an eight pip close above 1.1070 on Tuesday does not constitute a confirmed breakout, in my opinion.
But it’s going to come down to today’s close at 5 pm EST.
If the EURUSD closes below 1.1070, it’s an indication that the area is still serving as resistance.
On the other hand, a close above 1.1070 would be a sign of strength, in my opinion.
It would also carve an inside bar pin bar combination.
As of right now, though, there isn’t much to do here.
We could also see an influx of volatility for the majors today around 2 pm EST following the release of the latest FOMC minutes.
I’m still long the EURUSD from just above 1.1000, as I mentioned in the member’s area on the 14th.
Whether I hold or fold will come down to where today closes at 5 pm EST.
But even an exit at the current price would equal a 2R trade, so I can’t complain.