Daily Price Action

EURUSD Eyes Confluence of Resistance at 1.1280


With yesterday’s close, EURUSD opened the door for a move to the confluence of resistance that I mentioned over the weekend. That area includes a combination of channel resistance that extends from the current 2016 high of 1.1615 and former channel support from December of last year.

From here any retest of the 1.1200 area will likely attract bids while a move to 1.1280 is likely to trigger a flood of offers.

The timing of all of this seems to be lining up neatly with this Friday’s non-farm payroll release. As always, the event is scheduled for 8:30 am EST and will undoubtedly shake things up for the US dollar.

As such, I won’t be looking to trade the EURUSD ahead of the event but will instead watch how the 1.1280 handle holds up during the volatile aftermath. A sell signal from the confluence of resistance could make for a favorable opportunity to start next week.

Alternatively, a close above this area would expose the pre-Brexit high at 1.1425 and possibly the current 2016 high of 1.1615.

But perhaps more importantly, a close back above former channel support from December 2015 would indicate that the Brexit-inspired close below the level was a false break, in which case we could see the pair make an extended move higher.

For now, we’ll just have to wait and see what Friday’s NFP report delivers. Those brave enough can watch for a retest of 1.1200 as new support for a short-term move toward the 1.1280 resistance area.

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EURUSD confluence of resistance

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