After several months of consolidation, the EURUSD is finally on the move. Yes, the pair remains trapped in this 400 pip range, but the single currency did something yesterday it hadn’t done since December.
If you’ve followed me for the last few weeks, you probably know what I’m referring to.
The last time the EURUSD tested the April 2017 trend line was on December 18 of last year. It’s something I’ve had my eye on since then, but buyers have kept prices elevated throughout 2018.
One thing to keep in mind here is that it’s going to take a daily close below the level (using a New York close chart) to confirm a break. The same goes for 2008 trend line resistance. Look no further than the intraday spikes above the level.
Yesterday’s session came close to breaching the 1.2240 support area on a daily closing basis, but sellers appear to have come up short. Even if they had succeeded, I probably would have held off on entering until next week.
As it stands, though, the pair is catching a bid from twelve-month trend line support. If this continues into next week, we could see a return to the 2008 trend line near 1.2440.
Alternatively, a close below 1.2240 would expose 1.2160 followed by 1.2090. However, if the EURUSD does break trend line support over the coming sessions, I’m anticipating a move to 1.1930 and perhaps even 1.1700.