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EURUSD Challenges Must-Hold Support at 1.2240

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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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.

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EURUSD daily chart

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11 comments
syed says

Thanking you sir

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Olivia+phiri says

Ok thank you sir

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Abraham says

Your predictions this week was amazing even though am a learner but this week u did well all pair were did great

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Muhammad+Hussnain says

thanks sir justine

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Howard says

EURUSD has so far made a tweezer bottom bullish engulfing today 4/6 , current price at 1.2284 (as of 2 hours before close). It’s not going down easy.

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Tshepo says

Hi Justin

Thank you.

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murtaza nazham says

What do you mean by “yesterday’s session came close to breaching the 1.2240 support area on a daily closing basis?” On Thursday it did close below 1.2240. The low was 1.2219.

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    Justin Bennett says

    Thursday’s “low” was near 1.2218, but the “close” was 1.2239.

    Reply
Nicky Barnes says

Hi Justin. Will you wait for a retest of support trend line, or do you think the market will just fall to the next horizontal support level?

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Rafiq says

It is a faikey setup .

Reply
Rao+Muhammad+Iqbal says

a MILE STONE DISCUSS

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