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EURUSD Approaches Key Inflection Point

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The EURUSD has a decision to make.

I’ve discussed the significance of the confluence of support at 1.0990 for several weeks now.

It’s a key horizontal level based on the lows and highs since September.

The 1.0990 area is also the bottom of an ascending channel that extends from the year-to-date low.

Of course, we’ve yet to see the EURUSD test that channel bottom, but I’m confident it will attract buyers on a retest.

1.0990 was also the breakout point for the euro in October.

If that wasn’t enough, 1.0990 is the 61.8% Fibonacci retracement of the October range, which was a bullish engulfing candle.

All of the above is why I dislike selling the EURUSD while above 1.0990.

But at the same time, the pair just carved a lower high on the daily time frame.

That means I’m not interested in buying either.

This is one of those situations where I need more information from the EURUSD in order to make a decision one way or the other.

A daily close below 1.0990 could present a selling opportunity, perhaps for a move to the year-to-date lows below 1.0900.

Alternatively, bullish price action from 1.0990 would keep the pair afloat a while longer.

It could also re-expose the 1.1070 resistance area.

I wouldn’t expect too much movement from the EURUSD, or any pair this week, though.

The U.S. Thanksgiving holiday on Thursday means volume will be lower than usual during the second half of the week.

Even now we aren’t seeing much movement in the currency market.

For that reason alone, I’ll be scaling back on my trading frequency and any position sizing this week.

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EURUSD confluence of support at 1.0990

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18 comments
Justin Bennett says

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Emmanuel says

Thanks so much Mr Justin for the analysis

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    Justin Bennett says

    You’re welcome.

    Reply
Dumusani Khumalo says

Mr J.Bennett all he setsup
100% correct

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Love says

I love it

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PRASHANT AGARWAL says

i think eurusd might carve out a low end of the week .. german empl plus eur cpi .. both imp.

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    PRASHANT AGARWAL says

    lòoks like as said earlier euro giving bull engulfing today .. all eur data coming solid.

    Reply
Allan says

Your analysis basing on a bigger time frame is relatively fair. But your negelacting the fact that it’s making lower/higher lows in a smaller time frame… Which is so significant.
Am expecting eur prices to fall to 1.08819 before it goes long

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    Justin Bennett says

    I trade using the daily time frame, Allan. To each their own, especially when it comes to trading styles.

    Also, the swings you see on the daily time frame will always trump what happens intraday. But it all comes down to your preferred holding period and approach, as always.

    Reply
Muhammad says

Dear Justin,thanks again for your analysis and advice,

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    Justin Bennett says

    You’re welcome.

    Reply
Mr HA says

thanks you so much

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ali says

Thanks for the update sir justin.

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    Justin Bennett says

    You’re very welcome.

    Reply
sunday says

Justin please help. I have lost so much money to Forex.

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    Justin Bennett says

    Many people have lost money trading, including myself in the beginning. Use the information on this site. I’ve written over 100 articles and post daily commentary.

    Reply
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