EURUSD bulls are back in the driver’s seat this week.
At least for now. The descending channel I pointed out on Monday has caused the single currency to gain 70 pips so far this week.
It comes following a relatively bullish Friday candle. I mentioned this pattern in Sunday’s forecast.
I wanted to take a moment to remind everyone about the range-bound price action we’ve seen here since October of last year.
In fact, EURUSD lost most of its momentum following the steep downtrend between April and May of 2018.
Since then we’ve witnessed a lot of 100 to 200 pip swings.
If you’re a swing trader who uses the higher time frames like me, the last few months have been unimpressive to say the least.
However, this latest descending channel offers some relatively clean technicals.
It sure beats the sporadic price action in November and December.
EURUSD remains a buy in my opinion. But as a reminder, it may be best to limit your expectations to the 1.1440 resistance area.
Of course, a daily close above channel resistance would be a welcome sight for swing traders who use the daily time frame.
It would offer some much-needed momentum. It would also expose the year-to-date high at 1.1570 and perhaps the 1.1620 horizontal level.
But for now, EURUSD seems content between 1.1250 support and 1.1440 resistance.