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EURUSD Prints Fresh Lows for the Week, Where to Next?

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With EURUSD printing fresh lows for the week and breaking below the 1.1210 handle, many are wondering if this is where the single currency gives up recent gains.

While nobody knows the answer to that, myself included, today’s intraday break does present a potential opportunity. However, it’s important to note that the details of this opportunity have yet to materialize, hence its “potential” status as of this writing.

This makes taking action at current levels a bit premature, in my opinion. The reason I say this is because, at the moment, the pair’s break below 1.1210 is intraday, meaning it has yet to be confirmed with a daily close above or below the level.

This alone creates an opportunity for those who trade from the daily time frame. The two scenarios I’m working with, as outlined below, are as obvious as they are favorable.

The single currency either manages to climb back above 1.1210 before the close at 5pm EST, or it doesn’t. Either way we could see a favorable opportunity develop within the confines of the recent price structure.

If it closes above, we will likely see a bullish pin bar form, which would confirm that the 1.1210 level is likely to hold as new support. On the flip side, a daily close below the level would indicate weakness and expose channel support that extends off the December 3rd low, a level that has acted as a pivot of sorts over the last few months.

Want to see how we are trading this setup? Click here to get lifetime access.

EURUSD intraday break below key level

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