Daily Price Action
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EURUSD Descending Channel Offers New Boundaries

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Yesterday I mentioned the potential for a EURUSD bounce this week.

While it’s still early, the euro has caught a bid so far today. The single currency is up 30 pips following a relatively bullish Friday candle.

It wasn’t what I would call a pin bar due to the longer upper wick, but Friday’s session did signal an influx of buying pressure around 1.1250.

That buying pressure was a result of the retest of descending channel support. It’s a short-term pattern, but one that has driven the price action since late January.

However, this idea is more speculative than most.

The markets have been choppy so far in 2019, and the EURUSD has been one of the more difficult pairs to trade.

If you are going to take advantage of this short-term channel, you will want to limit your expectations.

I mentioned this yesterday, but a 100 to 150 pip target seems appropriate.

Given the price action over the last few months, aiming for anything more than that is unrealistic and unlikely to materialize.

Keep in mind too that Friday’s low of 1.1234 needs to hold.

That is not to say a move below 1.1234 is a selling opportunity, but the area does need to hold for buyers to have a fighting chance.

As for targets, the region between 1.1450 and 1.1480 stands out.

Get access to the same New York close Forex charts I use.

Last but not least, buying EURUSD is a counter-trend idea. So not only have conditions been unfavorable, but a buy here is against the momentum.

You’ll want to take that into consideration if you do decide to buy EURUSD.

Alternatively, those who still maintain a bearish outlook for the pair could watch for bearish price action on a retest of the 1.1450/80 resistance area.

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EURUSD descending channel on the daily time frame

Leave a Comment:

18 comments
Rahman says

Thks sir

Reply
    Justin Bennett says

    You’re welcome.

    Reply
idogei emmanuel says

i bought the small rally taking 20pips. thanks

Reply
    Justin Bennett says

    Glad to hear it. You’re welcome.

    Reply
SYED HASSAN says

THANK YOU,SIR

Reply
    Justin Bennett says

    My pleasure, Syed.

    Reply
Benjamin says

Thanks DPA I’m learning a lot.

Reply
    Justin Bennett says

    You’re welcome, Benjamin. That’s great to hear.

    Reply
Nkosi says

Thank you

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Hillary herman says

Still eurusd is complicated pair ..thanks sir for best analysis..may God bless you

Reply
    Justin Bennett says

    Most pairs fit that description at the moment.

    Reply
ghulam says

i agree it is now a days tough to trade in euro ,however i still believe other than technical which we follow market play with psychology of traders too , it is competition of trader and operates, long term prediction not possible but thank god it still follows chart pattern , everyone have own drawings of different indicators , i download 30 hr techniques of different specialists , the idea that clicked me is his saying it is a river , move in direction of market , even in short time frame it changes its course , , u cant stop its flowing in any direction ,,thanks , i personally assume it will move up in FOMC , to kill sellers ,and stop hunt ,then again will continue downtrend again ,, just prediction thanks

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OGBORO preciouslife says

U are a brother

Reply
derrick says

thanks so much

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Adenugba Adeniyi says

Thank you for reminding us of trend which suggest that buying is counter trend.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
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