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EURUSD Retests Twelve-Month Resistance

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EURUSD bulls are off to a fast start so far this week.

Last Tuesday I mentioned the potential for another retest of wedge resistance near 1.1340/50. At the time, EURUSD was trading at 1.1280.

Today we’re seeing that retest come to fruition.

Now, because buyers haven’t wasted any time this week, I would put that resistance area closer to 1.1350/60.

Determining points of interest with diagonal levels is always a bit of a guessing game as it depends on how quickly the market retests the level.

But remember that it’s going to take a daily close above this area to confirm the breakout.

It isn’t enough for the EURUSD to pierce 1.1360 on an intraday basis. That’s especially true for a trend line of this significance.

A daily close at 5 pm EST above this trend line is what it’s going to take.

Go here to get access to the same New-York-close (5 pm EST) charts I use.

So what about selling the EURUSD from this area?

You could, but I’m not a fan of the idea.

If this is indeed a falling wedge, the euro is nearing the end of the pattern. That means a breakout may not be far away.

In other words, I’m more inclined to watch for buying opportunities above this trend line than shorts below it.

However, nothing says the pair has to break out this week.

As I’ve mentioned recently, the EURUSD could technically stay within this formation until the end of May.

But that rarely happens. Most wedges break before the market reaches the very end of the pattern.

Keep in mind too that we have a Fed rate decision and statement this Wednesday at 2 pm EST.

The EURUSD may decide to stay below resistance until that time.

Those events on Wednesday could also serve as a catalyst for a move higher or lower depending on how the market interprets the outcome.

A daily close above trend line resistance would expose the horizontal level near 1.1480 which extends as high as 1.1500.

Alternatively, bearish price action such as a pin bar from resistance between 1.1340 and 1.1360 could send EURUSD back to 1.1130.

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EURUSD twelve-month resistance level

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28 comments
Justin Bennett says

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DAvid Nwosisi says

Well explained and analysed

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    Justin Bennett says

    Thanks, David.

    Reply
Ibrahim Muhammad says

You are just too good Justin,
Your succinct and clear write-up is one of its kind.
Always waiting for your set-ups.

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    Justin Bennett says

    Cheers, Ibrahim. I appreciate the support. 🙂

    Reply
Adebayo saheed says

your analysis on point always…thanks

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    Justin Bennett says

    My pleasure. Have a great week.

    Reply
Norman says

You have made trading easy for me #thanks for your informative setups. Stay blessed. I have been silently following you, now is time to subscribe. Thanks

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    Justin Bennett says

    Cheers, Norman. Glad to hear that. Thanks for following along.

    Reply
Praise says

As always, thanks a lot.

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    Justin Bennett says

    You’re welcome.

    Reply
shoukat says

thank you i got very useful information here

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    Justin Bennett says

    My pleasure. Let me know if you have questions.

    Reply
aaisha says

why the market is moving just because of news these days ?what you think?

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    Justin Bennett says

    Sorry, I don’t understand the question.

    Reply
      aaisha says

      i mean market is not volatile only volatility seen on occasion of some news otherwise market show little movement

      Reply
        Justin Bennett says

        The market ebbs and flows. It won’t always be action-packed.

        Reply
Prasanna says

God bless u Justin bro😃👍

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POLA P says

“However, nothing says the pair has to break out this week. ”

Your analysis always give us the following::
_probability paradox
_probability edge
_expectations management and more….

Thank you!!!!

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    Justin Bennett says

    I always try to keep it balanced. 🙂

    Reply
Terrence Xolani says

Thanks so much Mr Bennett God shall bless more than you are right now in trillions 😂😂

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    Justin Bennett says

    You’re most welcome, Terrence.

    Reply
Uzoma Nnamdi says

Thank you sir for the reminder

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    Justin Bennett says

    Anytime, Uzoma. Keep a close eye on tomorrow’s FOMC.

    Reply
Rashid says

I can wait to read your reviews about EURUSD. I haven’t missed any of your analysis for the last two years.

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    Justin Bennett says

    I appreciate your continued support. Cheers.

    Reply
Fredrick Nderitu says

Am following your highlights about EURUSD keenly……

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    Justin Bennett says

    Thanks for following.

    Reply
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