On Monday I wrote about a key resistance area for EURUSD.
The 1.1290 region is part of the March 2018 trend line. We’ve discussed this level several times over the last couple of months.
Even though the pair cleared this resistance level for a few days in March, I figured it would still play a role here.
Today’s session is validating my theory.
After reaching a high of 1.1287 earlier today, the EURUSD sold off aggressively and is currently trading 40 pips below our resistance area at 1.1290.
If it stays this way, we’ll have a bearish engulfing candle from resistance on our hands. As always, it all depends on where EURUSD closes today at 5 pm EST.
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That should be enough to keep the downtrend intact for a while longer.
Just keep in mind that key support isn’t far away at 1.1180/90.
You can see how EURUSD found support here in March and again earlier this month.
It’s going to be essential for sellers to clear that 1.1180/90 area on a daily closing basis. That’s the only way they’ll be able to open up downside targets.
One of those targets includes the November 2017 trend line.
That level connects with the lows from August and November 2018.
If EURUSD bears can clear 1.1180/90 support to expose that trend line, it could mean a 1.1060 print over the next few weeks.
Alternatively, a daily close above the March 2018 trend line near 1.1280 would negate the bearish outlook.
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Thank you?Sir
Sure thing!
Thank you for the insights Sir. highly appreciated. Stay Blessed
You’re welcome.
doing good, keep it high up
Dear Justin,
Thanks for your nice analysis…..
I believe Bull market is going to start as soon as market Close above 1.1280/90 , as we are in Seller market more than a year…
I’m not doing anything here at the moment.
Thanks Justin… awesome insight
You’re welcome.
From Technical point of view, it seems the pair should head north to touch 1.138 before the next leg down
It could happen. I have no interest in EURUSD at the moment.
…”currently trading 40 pips below our resistance area at 1.1290.”
Do you mean 1.12290? (I am trying to follow on my chart)
No, I meant 1.1290. The key word there is “currently”.
Your chart work is always accurate and filled with knowledge
Cheers.
Thanks Bennett
Thnx Justin… Am requesting u to give us the technical analysis for dollar index as well. Thank u
You’re welcome. I don’t discuss the USD index, at least not on the free website.
OK sir
U are a blessing. Thank man
You’re welcome.
I think it’s still long for a moment for eurusd
start of bull run mayb for eur .. the 1.142 breach high .. now did not make new low south of 1.175 .. but too early to say .. immed target seems 1.1330 around ..
Dear Sir! If you have waited for close of the day your analysis would have been different
No, it would have been the same. The point of this post was to illustrate how the March 2018 trend line is still a factor (which it clearly is).
Whether you buy, sell, or do nothing is your choice, not mine.
Thank you Justin, your awesome!
You’re welcome.