Despite their best efforts, buyers of EURUSD haven’t had much to talk about in the last 24 hours. But that isn’t too surprising considering how the pair closed yesterday’s session.
We’ve had our eye on the 1.1215 area for quite a while (previously noted as 1.1210). The level was pointed out after the single currency formed a bearish pin bar at resistance on May 3rd. It was also referenced on Monday as a possible target after the pair fell below the 1.1357 handle.
Although yesterday didn’t see much action, it did produce a close below 1.1215, an area that has influenced price since January of last year. More recently this level was the April 2016 low as well as the March 10th ECB session high.
How can we use this information for next week?
It’s going to depend on how the pair closes today’s session. But as mentioned last weekend, we could be looking at a move toward the 1.1060 handle. The established horizontal level lines up with trend line support that extends from the December 2015 ECB low.
Alternatively, a daily close back above 1.1215 could signal that there is some strength left, albeit temporary.
Regardless of how today ends, I’ll continue to look for selling opportunities while the pair trades below former channel support on a daily closing basis.
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