Daily Price Action
Shares

EURUSD Moving to Retest Wedge Resistance?

Shares

On Sunday I discussed a potential support area for the EURUSD.

The descending channel that began developing earlier this year is triggering a bounce so far this week.

While it’s still early to think about buying the euro, I do believe the price action over the last twelve months could surprise a lot of traders later this year.

As I pointed out last week, the upper portion of the channel in the second chart below is actually part of a much larger level.

Here’s an extended view of the daily time frame:

EURUSD falling wedge pattern

Now, some of you disagree that this is a falling wedge pattern.

And that’s fine. In a business as subjective as trading, I don’t expect everyone to agree with me.

In fact, I prefer it that way.

Some of the best trades of my career have come from contrarian views.

It will be interesting to see whether or not the EURUSD can challenge the 1.1340/50 resistance area this month.

If so, it would technically be the fourth retest of resistance since its inception last April.

So what’s the game plan?

I won’t be interested in buying EURUSD until the pair can clear falling wedge resistance near 1.1340/50.

A level this significant will take a daily close above it to confirm the breakout.

Go here to get access to the same “New York close” Forex charts I use for trading price action.

Until then, the EURUSD downtrend is intact.

However, I’m still not a fan of shorting the single currency down here.

If this is a falling wedge, it means the pair only has a few more months before buyers and sellers will be forced to make a decision.

That could be next month or even next week.

The last thing I want to do is short a market that’s nearing the end of a terminal pattern with bullish implications.

That’s what we’re facing here. Or at least that’s my interpretation of the situation.

So for now, I’ll wait.

I’m not in a hurry considering the clear skies that lie above wedge resistance.

Keep in mind too that this does not mean the EURUSD can’t carve a new 2019 low.

As long as 1.1340/50 is intact on a daily closing basis, the pair will be susceptible to selling pressure.

But if 1.1340/50 breaks, euro bears will be forced to reevaluate their outlook.

Want to see how we’re trading EURUSD? 

Click Here to join us and save 40% – Ends March 31st!

EURUSD descending channel on the daily chart

Leave a Comment:

10 comments
Matt says

great insight…as always. Highly appreciate it.
Stay Blessed

Reply
Rickwin says

Well balanced analysis.

Reply
Anas says

Great analysis.. thank you Justin

Reply
NiZa says

Thank you so much. Your content always making immense impact.

Reply
DESTINY ISIBOR says

Great insight there. Thanks Bennett

Reply
Adebayo saheed says

Always appreciate your Analysis …..thanks

Reply
Nathaniel says

Hey Justin love your bias but I feel the Eur will fall this week to its support 1.1150zone before moving back to its resistance at 1.1340/50 due to brexit saga well am 90% technical on this bias

Reply
Malik Haris says

I expect EU should break down side

Reply
Praise says

thank very much for your view. i appreciate that.

Reply
Polys says

Speechless… Thanks again Justin. Be blessed

Reply
Add Your Reply