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EURUSD Crashes Back Below 1.1875

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The EURUSD just closed back below the 1.1875 key level. We’ve had our eye on this area ever since the pair closed above it on August 25.

We’d expect it to now serve as support given last Friday’s close above it. However, yesterday’s 1.1835 close has traders questioning the validity of last week’s bullish break.

In fact, I’ll be watching to see how the pair reacts to 1.1875 should we get a retest over the coming sessions. If the area is still of importance, which I believe it is, then we will likely see Euro bears defend it over the next 24 to 48 hours.

Keep in mind that the single currency could also catch a bid near 1.1810/15. It’s the short-term trend line that extends from the recent swing low at 1.1553.

A close below that could very well take us back to the 1.1670 handle. It’s a level we’ve discussed many times in recent weeks as it served as both support and resistance since late July.

If we get a daily close at 5 pm EST back above 1.1875, I will consider removing the level from my chart. But at the moment, Tuesday’s close suggests that Friday’s breakout was false and that a turn lower is likely.

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EURUSD false break on the daily chart

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7 comments
Sam says

Hi Justin;

I’m learning so much since I started following you and reading the lessons (reading material) on your website. My trading experience has changed drastically for the better.

Thank you!

Reply
    Justin Bennett says

    You’re welcome, Sam. My pleasure.

    Reply
      Hassan says

      Always on point. ,, mentoring me.

      Reply
      ANETOR IBIKUNLE says

      Hello Justin. U mentioned removing the 1.1875 level from ur chart if price keeps playing around with it. Why please?

      Reply
        Justin Bennett says

        I like to keep my charts clean, which means every once in a while I need to reevaluate them. If a market stops respecting a level, I probably don’t want to keep it on my chart. That said, the EURUSD is still respecting 1.1875, so all is well.

        Reply
          ANETOR IBIKUNLE says

          Thanks Justin For The Reply. I hav learnt alot from you. Best Regards.

          Reply
          Justin Bennett says

          You’re welcome. Pleased to hear that.

          Reply
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