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EURUSD Rebounds; Double Bottom in Progress?

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

The EURUSD is bouncing hard from a support level I mentioned on Sunday.

The 1.1110 level supported the single currency on April 26th. That marked a multi-year low for the pair and triggered a 150 pip bounce.

In other words, you wouldn’t want to short into this level.

Although today’s session is still relatively young, if prices close above yesterday’s low at 1.1150, we could see EURUSD trend higher tomorrow and perhaps next week.

However, if buyers fail to close today’s session above 1.1150, it will be business as usual which means a continuation of the downtrend.

Today’s bounce may also be the start of a double bottom.

Given the 150 pip range between 1.1110 and 1.1260, a double bottom pattern here could produce a move as high as 1.1410.

Notice that 1.1410 served as resistance recently in February and March.

Just keep in mind that buying the EURUSD is a countertrend idea. As such it comes with greater risk which means position sizes need to be adjusted.

But all in all, this looks like it could be a short-term bottom for EURUSD.

The first stop for a move higher is the 1.1260 level I pointed out on Sunday. And if buyers can get through that, it’s on to 1.1410.

It all hinges on today’s close, though.

A 5 pm EST close above 1.1150 would offer a buy signal (the closer to the high of day the better).

Alternatively, a sub 1.1150 print into the close would likely produce another test of 1.1110 support.

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9 comments
Justin Bennett says

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Levis Maseko says

I took it Justin using the resistance from 26th April 2019. Plus the Fibonacci of 61.8 as my TP.

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    Justin Bennett says

    Nice!

    Reply
Henryk says

Dziękuję Justin,Twoja analiza EURCAD dała mi dobrze zarobić.Pozdrawiam

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    Justin Bennett says

    English, please.

    Reply
      Albert says

      google translate from Polish
      Thank you Justin, your analysis of EURCAD gave me a good income. Welcome

      Reply
    emeka says

    Thank you Justin, your analysis of EURCAD gave me a good income. Welcome

    Reply
Mody says

It close at 1.11700. It sign for a buy

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Prashant says

v timely justin! hoping dxy will fall ovr next few weeks

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