Daily Price Action
Shares

EURUSD Moves to Test Resistance Above 1.1030

Shares

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 today after carving a bullish pin bar on Tuesday.

But the question is, how far can buyers take the single currency?

Is this just a relief rally or something more?

While nobody knows the answer to either question, we can use the recent price action to find clues.

First, the downtrend that has been in place since February of last year forces me to be more interested in selling than buying.

Second, until the EURUSD breaks free from the descending channel below, buyers will likely run into considerable selling pressure.

And third, the pair is still below the 1.1030/60 region.

I pointed out this area in Sunday’s forecast as one to watch this week.

You can see how 1.1030 is very near the August 1 low at 1.1026. And 1.1060 includes several lows from the second half of August.

One to two messages daily. You can unsubscribe at any time. See our privacy policy.

As such, I do expect sellers to defend that 1.1030/60 area.

However, nothing in this game is certain.

No rule says the EURUSD can’t break through 1.1030/60 and even take out channel resistance near 1.1100.

That’s important to keep in mind regardless of the currency pair you’re trading as it will help you keep your position sizes under control.

I still like the idea of selling EURUSD on a retest of 1.1030/60, but I will want to see a rejection first.

A bearish pin bar or rejection candle will do.

That would expose the confluence of support at 1.0860.

On the other hand, if EURUSD begins to pressure the 1.1030/60 area without backing down, it would be a sign of an imminent (upward) breakout.

In which case, I will stand aside to see what happens at 1.1100.

Want to see how we’re trading EURUSD? 

Click Here to join and save 40% – Ends September 30!

Leave a Comment:

14 comments
Justin Bennett says

Now you can get access to the same professional Forex charts I use!

Get access today: http://bit.ly/2UzPyiR

These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

Download the platform here: http://bit.ly/2UzPyiR

Reply
Femi Orunmole says

Good analysis all the time thanks so much.

Reply
    Justin Bennett says

    Thanks for following along.

    Reply
Eder says

How does the political, geopolitical and macroeconomic situation affect the pair?

Great work. Thank you !

Reply
IDOGEI emmanuel says

I am with u Justin. My mentor

Reply
    Justin Bennett says

    I appreciate the support.

    Reply
Japheth Nwadiogor says

πŸ‘ kudos to you Justin. I always concur with your analysis. But I want to add that it will probably take the pair the whole of this week to test that 1.1060 resistance level. Then supply continues next week.

Reply
    Justin Bennett says

    I’m not so sure we will even see that resistance area hold. It’s going to come down to the type of price action I see below 1.1060 this week or next.

    Reply
Leon Kawana says

It seems bears are on their way up to test the R zone @1.0650. It seems that the Dollar is fixing up for tomorrow’s. ……Non-Farm Employment Change which might make the dollar take over EurπŸ“‰πŸ“Š

Reply
Howard Hill says

Concise & clear summary. Thank you Justin

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Philip says

A bearish pin bar has formed on Thursday. And it looks nice

Reply
    Justin Bennett says

    It looks like a trap to me.

    Reply
Add Your Reply