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EURUSD: More Room to Move Higher Than Lower

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

The EURUSD sold off right where we thought it might on Thursday.

I wrote about the 1.1030/60 resistance area on September 4.

You can see how this region served as support throughout August.

It makes sense then to assume sellers will want to defend the 1.1030/60 zone as resistance.

However, I’m not selling EURUSD.

Sure, Thursday’s long upper wick signals an influx of selling pressure. And so far, that 1.1030/60 area is holding as resistance.

But trading price action is about more than just looking for candlestick patterns.

It’s about understanding the ebb and flow in the market.

You see, the aggressiveness of a multi-day move often tells me more than a single 24-hour candle.

Let’s take a look at the EURUSD price action since August 29.

The pair lost 170 pips between August 29 and September 3. That was a four-day move.

Then, on August 3, the euro began its ascent.

Buyers took the pair approximately 160 pips higher between September 3 and the 5th. That was a three-day move.

So EURUSD took four days to drop 170 pips and just three days to claw back 160 of those pips.

See my point?

This does not mean the EURUSD won’t move lower next week. Nobody knows where this or any market is headed.

But I don’t want to sell into an aggressive bullish move like this without a rounded retest.

I also don’t want to go short when a market is coming off a channel floor like the one below, especially when it’s a descending structure.

All in all, the EURUSD continues to be a tough pair to trade.

That’s been the case all year. And given the current stalemate between buyers and sellers, I don’t see it changing anytime soon.

With that said, the pair has more room to move higher than lower just based on the larger descending channel below.

Take that for what it’s worth.

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28 comments
Justin Bennett says

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Reply
    P says

    Very excellent analysis Mr Bennett. I still await ur response from the material u sent me though.

    Reply
Osagie says

Thank you sir

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    Justin Bennett says

    You’re welcome.

    Reply
Ovidiu L says

that is what ‘feel the market’ is all about.

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    Justin Bennett says

    Correct!

    Reply
Hassan says

thank you for creating whatsapp group. Am sorry it just a suggestion why not use telegraph because it will get a stage that it will not accept more member to join. It has limited member but telegraph is not like that. thanks 4068.

Reply
    Justin Bennett says

    I have both. Here’s the link for Telegram:

    https://t.me/justinbennett

    I also have multiple WhatsApp groups so the number of participants isn’t an issue.

    Reply
      Michael says

      Can I get the link to one of your whatsapp groups?

      Reply
        Justin Bennett says

        See above. I always include a link in the middle of the post.

        Reply
Nkululeko says

Sir but if I check on lower time frame I saw a shooting star on 4 hour chart and a double top on 1 hour time frame ,thats doesn’t mean a down trend is still continue it way?

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    Justin Bennett says

    I’m looking at the bigger picture. The intraday time frames don’t mean a whole lot when you’re talking weeks and perhaps months.

    Reply
      Nkululeko says

      Oh jah I know a different now

      Reply
Frank says

Thanks for your eye opening comments. Trading will not be the same again.

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Favour says

I should prolly close my EURUSD sell positions in minor loss and just watch till New resistance breaks.

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    Justin Bennett says

    I think you should follow your plan. That will always be the best course of action, not listening to someone else.

    Reply
Steven says

You Sir, make a whole lot of sense.

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    Justin Bennett says

    Cheers, Steven.

    Reply
Adebayo Saheed says

Thanks sir….what’s the meaning of ebb u mentioned above sir?

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    P says

    Means consolidations.

    Reply
      Nkululeko says

      No it not that ,it just up’s and downs,it happens in trends movements someone tell if I’m wrong

      Reply
Imtiaz Nasir says

Very Nice I always make a mind to trade setup with your aggressive price action Analysis and very helpful to me

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    Justin Bennett says

    Glad to hear it.

    Reply
abbas says

honestly i left euro -usd from 6 months it only gives loss , we cant float any position to wait where as oil is more dangerous thought but believe it respect levels and key levels and respect my trading set up and gives good risk reward ratio thanks

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Vijay parmar says

well the closing has formed the double inside bar with pin bar and rejecting EMA. Euro will move toward 1.08 in coming weeks and will close the gap of 2017.

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    Justin Bennett says

    The bottom line is that nobody “knows” what the EURUSD (or any market) “will” do.

    Reply
      Vijay says

      I agree that nobody knows however the possibility for downside is more after seeing the chart

      Reply
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