Daily Price Action
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EURUSD: Indecisive but Technically Sound

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

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Despite the indecisive price action of late, the EURUSD has respected key support and resistance nicely. On Sunday, I mentioned how 1.1530 would likely attract a bid while any retest of the 1.1640/50 area would trigger an influx in selling pressure.

Tuesday’s session reached a low of exactly 1.1530 before bouncing 50 pips into the session close at 5 pm EST. We then got a retest of 1.1640/50 on Thursday which attracted selling pressure. So far, today’s session has experienced more of the same.

Apart from the selloff that reached 1.1300 support last month, the Euro has been confined to a 300 pip range since early June. It’s been a lot of back and forth price action without any clear direction.

That said, if last week’s false break above descending channel resistance is any indication, we could see the EURUSD lose ground next week.

There are no guarantees, but a false break to one side of a pattern often results in an extended move in the opposite direction. In the case of the EURUSD, that would mean a move lower, perhaps back to key support at 1.1300.

However, sellers first need to clear the 1.1530 handle on a daily closing basis (New York 5 pm EST). It’s an area that has supported the pair since late May and was also responsible for Tuesday’s bounce.

If the pair does close below 1.1530 next week, there isn’t much to stop another run at 1.1300 support. Such a breakdown would give us more than 200 pips to work with, so this one will undoubtedly be on my list for next week.

Now, if buyers do close the EURUSD back above channel resistance as we saw in late August, I will most likely stand aside. I may even remove this channel from my chart altogether.

In summary, I’ll be interested in adding to my short position which I’ve been holding since last week but not until the pair clears 1.1530 support on a daily closing basis.

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EURUSD daily time frame

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17 comments
Eze williams says

I want bonus on my real account

Reply
    Justin Bennett says

    Did you follow the instructions I provided during the webinar here:

    https://dailypriceaction.com

    Reply
Aly says

Thx ,,, and currently GBP USD is forming a nice pin bar ,,, seems USD is getting prepared to move down next week … I know you dont take Fridays as strong signals but its still a signal 🙂

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Thina says

Today would have been the greatest days with this pair only if I applied all you wrote – which was spot on ! I FEEL so stupid right now😭😭 I need to learn to hold positions and not chop and change ….. Anyway YOU ARE JUST THE BEST in this game!!!!!

Reply
    Justin Bennett says

    Many thanks, Thina. Trust your analysis and intuition. Draft your gameplan before you enter and let the market do the heavy lifting. And don’t forget to reduce your size. Trading too big is the number one reason traders exit positions prematurely.

    Reply
HIGHLANDER says

Thank you Justin, you are the best, your analysis has bean very helpful. I am getting better by the day. Thanks once more and keep up the good work.

Reply
    Justin Bennett says

    That’s great to hear, and you’re very welcome.

    Reply
Pierre Mifsud says

I see more bullishness in the EURUSD but limited to the 1.162-1.166 handle

Reply
    Justin Bennett says

    Until 1.1530 breaks down, we’ll continue to see bounces into resistance.

    Reply
Francisco Gomez says

Must be get push in Elliot waves’s segment C

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matt says

hi justin, i think eurusd is almost clear with the daily closing. no doubt i have already done my analysis to short the pair down to 1.3 next week before coming across your analysis. let see hw things works out next week

Reply
    Justin Bennett says

    Still holding above support for now.

    Reply
FELIX GREAT says

Thanks Justin. God bless you

Reply
    Justin Bennett says

    My pleasure.

    Reply
Bon says

Thanks for analysis. I have a question though, after the break below the 1.1530 will you wait for a retest of that area before entering your short position?.

Reply
    Justin Bennett says

    Maybe, maybe not. It depends on how things look at the time.

    Reply
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