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EURUSD Reaches Target Area at 1.1300; Where to Next?

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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.

On August 9th I pointed out a resistance area on the EURUSD that was likely to attract an influx of selling pressure. The 1.1620 area was the location of former wedge support that held in late June and throughout July.

I also discussed this 1.1620 area in the August 5th weekly forecast. It didn’t take long for the market to retest former wedge support as new resistance, and by August 9th the pair was under immense pressure.

To be honest, my entry was a bit premature, although it still worked out nicely. I entered during the August 3rd retest just above the 1.1600 handle. Those who waited to go short the next week probably secured an even better entry closer to 1.1620.

Earlier this morning I decided to book my profit of 286 pips as the market reached my target just above 1.1300. I never intended this to be a long-term hold such as my EURCAD short which I’ve shared several times recently.

As for the EURUSD, we could see a bid form in the 1.1300 region. It’s the objective of the wedge pattern below as well as the November 2016 U.S. elections high. You can also see where the 1.1300 area served as a pivot between June and July of last year.

I do want to be clear though that I am in no way bullish the Euro. In fact, I just sold it against another currency this morning. More on that later.

For now, it’s going to take a daily close (New York 5 pm EST) below the 1.1300 handle to open up additional targets. The next key support below 1.1300 comes in at 1.1125 followed by 1.0865.

If buyers can organize a bid at 1.1300, there is a chance we could see a return to former support at 1.1500, which is now resistance. That said, I see nothing at the moment to make me think buyers can pull off a 200 pip relief rally. Of course, that can change in a hurry.

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EURUSD range on the daily time frame

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22 comments
Cyril says

Great analysis, I have been shorted from 1620 all the way down. Very much appreciated. Would you mind to share which currency sold this morning against Euro. Thanks a lot

Reply
    Justin Bennett says

    You’re welcome. Well played.

    Reply
    Pierre Mifsud says

    EURAUD maybe

    Reply
yasser abdelhamed says

Good work Thanks

Reply
    Justin Bennett says

    My pleasure.

    Reply
Martín Felix says

Thanks Justin!

I really apreciate your advises and posts!

Regards

Reply
    Justin Bennett says

    You’re welcome, Martin.

    Reply
      Eyo Andem says

      Nice one Sir. I join this group just three days ago, and the way I see things going within six months. I will be at the top. With you sir.

      Reply
Grace says

Mr Justin thank you very much for the analysis. You are a mentor indeed. God bless you

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Grace says

Mr Justin thank you very much for the analysis.

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matt says

honestly ur doing a great job carrying us along in ur trading journey, i so much appreciate ur kind gesture toward upcoming fx traders like us who without guidance from u will still be thinking of how to refund our accounts. may God continue to bless u

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Sylvester says

Good work! Please how can I get your trading signals? Thanks for anticipated reply

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Nelson Oguanobi says

Thank you for the fine and accurate analysis

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Flossy says

Just want to take this chance to say Thank you for your analysis.. I started following you around 2 months ago and am really learning a lot as a new trader ..you don’t know just how much I appreciate your articles…Thank you thank you thank you!!!

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John Uzoma says

Great analysis sir. But I think we could experience some bullish price action because a bullish engulfing bar has formed on the 4-hour timeframe.

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bilad says

I am following you from last couple of month and feel like I have found you a genuine person to trust

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Bongo says

Looks like it bounced just below the 1.1300 area. Roughly at 1.1299 on my daily chart, looks like we are headed for another test of the 1.1500 area. What do you guys think?

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Jenerali says

great content sir

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Masud Rana says

Thank’s

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dave says

I appreciate so much what Mr Bennett is doing but if i don’t have the bucks to join the members area now, is there a way i can still be benefiting marginally from your kind analysis. thanks

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Martin Paul Muriithi says

Justin….you are awesome, big thumbs up to you.

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