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EURUSD Clings to Support Following Impulsive Selloff

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

Click here to get access to the same charts I use.

In Wednesday’s EURAUD commentary, I remarked at how the Euro was hanging by a thread against the U.S. dollar. The 230 pip single session drop on June 14 put sellers back in control, but Euro bulls have battled back this week.

Here’s why…

EURUSD weekly time frame

There is a trend line that extends from the 2017 low at 1.0340. That level connects with the April 2017 low and was responsible for the May 30th bounce just last month.

You can also see how the last five sessions have benefited from this 2017 trend line. Buyers were back at it again today, but they’re headed for a resistance level at 1.1720 that could pose some problems next week.

I wouldn’t be surprised to see the pair struggle at 1.1720 given last week’s impulsive selloff. Moves like the one last Thursday tend to leave a lasting impression which means the EURUSD could have a difficult time trying to claw back recent losses.

However, I won’t entertain a short here until the 2017 trend line breaks on a daily closing basis. Only a close below it at 5 pm EST (New York close chart) would pique my interest. I’ll continue to be a spectator until then.

A break lower would expose several key support levels including the November 2016 high at 1.1290 followed by 1.1125. Alternatively, a move higher from current levels would likely encounter selling pressure at 1.1720 followed by 1.1830.

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EURUSD daily time frame

Leave a Comment:

13 comments
folaranmi says

you are analysis just make Forex made simple.Thanks boss

Reply
    Justin Bennett says

    You’re welcome. Enjoy your weekend.

    Reply
jay says

this mean buy or sell for monday tomorrow ?

Reply
    Justin Bennett says

    Neither.

    Reply
astrobar says

Enter your comment…thank you justin nice analysis

Reply
Daryll says

Jus….if it close below 1.1720 do we wait for selling pressure like wicks or retest, doji before we enter short?

Reply
AsgharFx says

Your article is full of information and highly helpful for me thank you

Reply
Aswin says

This time, your analysis is exactly the same as mine

Reply
Aswin says

I learned a lot from you

Reply
Zaman says

I read whole thread ..and found it not ignoreable, actually seemz on right of fx analysis/physycology.

Reply
brian says

hi thanks for the analysis,it always helps me, do u think a head and shoulder is forming on weekly eurusd time frame

Reply
Bogatsu says

You were right!!! The buyers did struggle today but do you think the bears are in full control? Something is holding them in terms of driving the pair down.

Reply
Patrick says

You are really doing a great job, well done. What can you say about EUR/USD 30min,1h,4h they seem to be on the resistance are?

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