Daily Price Action

EURUSD: Expect Fireworks on Friday, Just in Case


The EURUSD is reaching back to its late March highs today after breaking above 1.0990 on Wednesday.

Thursday’s 100-pip rally looks impressive, especially when you view the five hours between 8 am and 1 pm EST.

However, 1.1080/90 was always likely to attract sellers.

I pointed this out in the member’s area at 1 pm EST when EURUSD was trading at 1.1078.

As of this writing, buyers are holding their ground relatively well.

But keep in mind that Friday the 29th is the last trading day of May.

Those who bought EURUSD at lower prices may look to head for the exits before the weekend.

And although I don’t expect anything ground-breaking from Jay Powell’s speech on Friday at 11 am EST, you never know in an environment like this.

If that weren’t enough, we just got wind of news that President Trump will be speaking about China on Friday (time TBD).

His comments could spark a fresh round of risk-off sentiment given the bits and pieces we’ve heard recently.

As always, the market will have the final say on that front.

But as for the technical landscape for EURUSD, it’s a matter of whether or not buyers can hold price above 1.0990.

They also need to take out the confluence of resistance at 1.1080/90.

Do that, and the euro could surge higher toward 1.1130 and perhaps 1.1230.

On the flip side, if EURUSD bulls give up 1.0990 on a daily closing basis, the pair is on its way back to the area between 1.0700 and 1.0800.

Regardless of what happens, stay diligent and expect fireworks as we move into the final 24 hours of trade for May, just in case.

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EURUSD daily chart showing ascending channel
EURUSD daily time frame

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Justin Bennett says

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Zakariya Babayo says

You are always on point. Thanks.

    Justin Bennett says

    You’re welcome.

Gary Jenkins says

So once again Justin it may happen or it may not, and it may hit a trendline from 1641 and go down 3 million pips, but it may take another 2 weeks, months, years or never happen. I Think I’ve seen this movie. Well I can tell you that we may find a vaccine for coronavirus or we may not.

    Justin Bennett says

    Gary, if you have conviction in a market like this, go for it. But if you have it all figured out, I’d have to wonder why you’re here in the first place.

    I’ll stay conservative in an environment like this, especially with a sideways market like EURUSD.

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