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EURUSD: Spotlight Shifts to 1.1060 Next Week

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Over the last fourteen months, EURUSD has experienced some extreme moves. Some bullish, some bearish, but all in all, the pair has remained range-bound between 1.0500 and 1.1600.

Within this range, one level, in particular, has been a key contributor to those movements. It has also served as somewhat of a median for the current range.

The 1.1060 handle has influenced price action since March of 2015, and unless the pair manages to find a substantial bid at current levels, it could be back in the spotlight next week.

But the significance of this area extends beyond a simple horizontal level.

It’s also the 50% Fibonacci retracement when measuring from the December 2015 low at 1.0515 to the current 2016 high at 1.1615. And if that weren’t enough, the 1.1060 level intersects with trend line support that extends from the December 2015 low.

This trifecta should make next week an interesting one unless the current trajectory of EURUSD changes between now and then.

And as has been the case since October of last year, I will only be interested in selling weakness, which in this instance would materialize with a close below the 1.1060 area. Such a move would expose the next support level at 1.0935 and possibly 1.0820.

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EURUSD key support area for next week

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4 comments
Ferry says

Its great scenario for EU and I am waiting whether it will go down or reversal, however possibility for go down seems stronger because of the FED will hike the interest rate. Thanks Justin

Reply
    Justin Bennett says

    Ferry, I’m only concerned with the technicals. I’ll let others worry about the fundamentals.

    Reply
ali says

ero/usd analysis and Support&Resistance any update

Reply
    Justin Bennett says

    Ali, no update necessary. The levels in this post are still intact.

    Reply
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