Daily Price Action
Shares

EURUSD Requires Patience, and Lots of It

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 proving once again that the range between 1.1530 and 1.1630 still matters. I mentioned both levels a couple of times last week and again on Sunday where I wrote that an early retest of 1.1530 this week seemed likely.

Monday’s session did just that. Sellers challenged 1.1530 but were unable to penetrate the level. That bounce from 1.1530 has led to today’s retest of the 1.1630 area.

Keep in mind that both areas are being respected on a daily closing basis (New York 5 pm EST). In other words, I wouldn’t suggest you attempt trading a break from either level on the 1-hour or even 4-hour time frame.

It’s going to take a daily close below 1.1530 or above 1.1630 (now closer to 1.1620) to get the job done. Until that time, patience is key.

While you could attempt trading this range, there simply isn’t enough real estate in my opinion which means your risk to reward ratio will suffer. You’re also bound to get it wrong at least once which may wipe out any profit you make.

At the moment, I’m finding it difficult to maintain a directional bias. I still have my EURUSD short from 1.1642, but I’m not overly convinced yet. I was looking for the August 31st breakdown to carry some bearish momentum, but so far that isn’t the case.

Another interesting development was GBPUSD closing above descending channel resistance yesterday. While the two (EURUSD and GBPUSD) aren’t as correlated as they were years ago, they do still share some similarities.

All one needs to do is look at the EURGBP daily chart to see how the two currencies have been gridlocked for the last twelve months.

It’s times like this that patience can become your biggest advantage over the competition. You know that a breakout is coming given the narrowing structure you see in the chart below, but the key is knowing when to sit idle and when to act.

The answer lies at 1.1530 support and 1.1620 resistance. A daily close above 1.1620 would expose 1.1730 followed by 1.1830. On the other hand, a daily close below 1.1530 would most likely pave the way for another run at the 1.1300 support handle.

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

Click Here to Register for the Free Webinar!

EURUSD daily time frame

Leave a Comment:

23 comments
Jerry says

Please take me off your email list.

Reply
    Justin Bennett says

    You can always click “unsubscribe” at the bottom of any email I send to be taken off.

    Reply
    Richie Armstrong says

    Common Jerry. Be sensitive.
    Thanks Justin for your daily analysis. I appreciate you.

    Reply
    Ali says

    why do you even write this here? Thank you Justin for the chart and blog!

    Reply
    andrea says

    Jerry you got some celebrity here congrats!

    Reply
      Justin Bennett says

      You all crack me up. Thanks for the support everyone.

      Reply
Sera says

👍Thank you for the analysis

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Jay says

Thank you

Reply
    Justin Bennett says

    My pleasure, Jay.

    Reply
Howard says

Strong supply area on hourly chart, between 1.1640 & 1.1650.
Sold down quickly today from 1.1643

Reply
Siyabonga Mkhize says

Thanks Justin

Reply
    Justin Bennett says

    Anytime my friend.

    Reply
Zulfikar says

Excellent Analysis…I am one of your fans and learn a lot from you ..thanks a lot

Reply
    Justin Bennett says

    Cheers. You’re welcome. Thanks for sharing that. 🙂

    Reply
Lindiwe says

Thanks Justin, i learn a lot from your analysis, God bless you for sharing your wisdom with us.

Reply
    Justin Bennett says

    You’re welcome. Pleased to hear that.

    Reply
Yinka says

Absolutely. Quite indecisive.

Reply
    Justin Bennett says

    It’s been a theme for several currency pairs so far this month. But indecision is always followed by favorable setups. It’s just part of the natural ebb and flow.

    Reply
Al says

I’m going to go with trade war worries (good for USD) and W1 pin bar from 2 weeks ago on down trend to maintain a definite bearish bias.

Reply
Kimberly says

Hi Justin, as always great analysis. I’m a new member and sent a few emails to you. Please respond as I would like to get into the members area. Keep up the great work.

Reply
Thato says

Very educational Justin..thank you..but I just can’t seem to register for your webinars on my laptop computer..please help

Reply
yahai says

Justin,
apart from all you have said, I also see an inverse head and shoulder forming. does this give us a clue to expect price to push up(i.e buy)

Reply
Add Your Reply