EURUSD Falls Back Below Key Handle at 1.2330

by Justin Bennett  · 

March 28, 2018

by Justin Bennett  · 

March 28, 2018

by Justin Bennett  · 

March 28, 2018

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

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Just yesterday we looked at how the EURUSD once again encountered sellers at the 2008 trend line. It’s a level that has capped every advance from the single currency for the better part of 2018.

What began Tuesday as a mild selloff accelerated during yesterday’s session. The 1.2308 close puts the pair back below the short-term trend line that extends from the February 16 high.

Yesterday I wrote that if this short-term trend line broke down, we could see another run at the April 2017 trend line. That’s now a reality following yesterday’s close.

At the moment that April 2017 trend line comes in near 1.2220/40. Naturally, the fact that it’s a trend line means the price at which the market interacts with it may change.

If the EURUSD retraces some of yesterday’s move, I would expect the pair to encounter an influx of selling pressure near 1.2320/30. This is the February 16 trend line that broke down with Wednesday’s close.

Whether or not you find this 100 pip range (1.2220/40 to 1.2330) attractive depends on your style of trading. As I pointed out yesterday, I’m more interested in an eventual break of this long-standing terminal pattern.

I’m not a fan of trading a consolidating market, especially when the range narrows to this degree. An eventual break of the 2008 trend line resistance or the April 2017 support, on the other hand, would likely trigger a multi-month run.

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  1. Hello Justin. I am very glad with your daily analizes and since years i’m making some pips. Thank you for that. I do have a new york close broker, Global Prime, but i do see some difference with your Daily charts. No matter what i do, i cannot find how you draw that 2008 line in your chart. Do you have a wider screenshot of it?.
    Thank you in advance!!

  2. What do you think will EUR USD Still test the trendline at 1.2220/40.
    It took a dip of around 50 pips from 1.2330 trendline and came back.
    Date – 30th March

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