The EURUSD has bounced from 1.1230 support several times of late.
I first mentioned this area on June 5th as the one that sellers had to break to expose lower levels.
We’ve seen EURUSD dip below 1.1230 intraday on several occasions, but sellers have yet to secure a daily close below it.
As you probably know, I trade based on the daily time frame.
Part of the reason why that’s so advantageous has to do with the 5 pm EST closing time.
Why 5 pm EST?
That’s when the retail currency market opens on Sunday, and closes on Friday.
So, a daily close at 5 pm EST gives you five 24-hour sessions each week.
With that out of the way, let me show you what I’m keeping an eye on with regard to the euro’s recent price action.
First, the EURUSD is trying to close below 1.1230, as I mentioned above.
However, I’m not convinced that there is a short opportunity that’s worth the risk.
The intraday chart below shows what could be a falling wedge pattern that has developed over the last six trading days.
Even if we get a daily close below 1.1230, losses could be limited.
If we see 1.1150 support fail (as shown below), it will suggest a broader selloff toward the 1.1000 area.
In summary, the conflicting signals from bulls and bears leave the EURUSD in “no man’s land”, making it unattractive at current levels.
But do keep an eye on 1.1150 and 1.1260 as a breakout from this range could make things interesting.