Daily Price Action
Shares

EURUSD Reaches Key Support Zone at 1.1530

Shares

Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use.

The EURUSD is currently testing critical support at 1.1530. It’s a level I’ve mentioned a few times recently, including last Thursday when I deemed the single currency to be bearish below 1.1700.

So far today, the euro has plunged to a low of 1.1505. However, for those who have followed me for a while now, you know how important the daily close can be in situations like this. It’s why I use New York close charts.

Anything other than the New York close at 5 pm EST can get you in trouble. The market opens at 5 pm EST every week, so it makes sense to have each 24-hour session close at the same time. This gives you five 24-hour sessions to work with each week.

How does this play into what we’re seeing on the EURUSD?

You’ve likely noticed how the pair has been flirting with 1.1530 so far today. The market dropped to 1.1505 earlier in the day and even spiked to 1.1557 moments ago.

But all of that is irrelevant if you’re an end-of-day trader like me. Essentially, the only thing that matters is where EURUSD closes the day at 5 pm EST. Everything else is just noise in my experience. It’s also a quick way to lose money if you aren’t careful.

So while EURUSD is (so far) down for a fifth straight session, as long as the pair remains above 1.1530 on a daily closing basis, further downside will be limited.

Now, if sellers can secure a daily close below 1.1530, it would expose the next key support at 1.1300. There isn’t much between 1.1300 and 1.1530 to prevent a selloff like the one we saw in August; though perhaps not as aggressive.

Keep in mind too that the euro is getting a bit overextended here. The daily mean as measured by the 10 and 20 EMAs is up near 1.1640, so we may see some additional consolidation or even a bounce while above 1.1530.

The bottom line is that 1.1530 will continue to attract buyers until the pair closes the day (New York 5 pm EST) below it. And if 1.1530 support does fail on a daily closing basis, there isn’t much to prevent another slide to the 1.1300 handle.

Alternatively, I’d expect the 1.1620/30 area to attract sellers if tested. Above that buyers would need to contend with the 1.1680 resistance area.

Want to Learn Step-By-Step How I Swing Trade the Forex Market?

Click Here to Register for the Free Webinar!

EURUSD key support and resistance

Leave a Comment:

20 comments
Evans says

Thanks so much Justine

Reply
    Justin Bennett says

    You’re welcome. It’s Justin though. “Justine” is a girls name. 😉

    Reply
    Ishmael says

    Thanks for powerful analysis on CFDs

    Reply
David Brennan says

What you are trying to say as well is, even though price closes above 1.1530 after NY session, this still isn’t worth to trade with 1:2 RR since the resistance is too tight? If Pin bar forms rejecting 1.1530 and your resistance is 1.1620, this is RR compromising, right? TIA

Reply
    Justin Bennett says

    Sure, but it has more to do with the fact that EURUSD has been directionless since June.

    Reply
      Rajesh says

      Let’s see if NFP start to give it some upwards direction this Friday. Last quarter kicks off and I suspect EUR/USD may close around neutral by end of this year.

      Reply
      David Brennan says

      yeah it makes sense. Thanks mate!

      Reply
Manuel says

Thanks Justin !!

Reply
    Erwan shah says

    Thanks coach…by the way daily open&close candle at 5a.m…the why im always in trouble..can have the solution coach?

    Reply
      Justin Bennett says

      Nothing I can do about that. But you shouldn’t be trading immediately following the 5 pm EST close anyway, so it shouldn’t matter.

      Reply
    Justin Bennett says

    You’re welcome.

    Reply
ABDUR KHAN says

Can’t thank you enough for what you do for us brother.. Just want to say that I appreciate it very much.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Samuel says

Thanks for this information. Sir,I very much appreciate it .

Reply
    Justin Bennett says

    It’s my pleasure. 🙂

    Reply
ladi says

great piece as per usual sir, i’m new in the fx world and your insights have been really helpful

Reply
    Justin Bennett says

    Pleased to hear that. Be sure to reach out with any questions.

    Reply
Zion says

Ok. Mr. Bennett, now that the daily close is above 1.1530, how do you take a position and what time frame do you usually engage in doing so?

Reply
    Justin Bennett says

    Just because the market closed above 1.1530 yesterday doesn’t mean you should take a position.

    Have another look at the above commentary.

    Reply
Jabir laasri says

Hola buenos dias

Reply
Add Your Reply