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.
I wrote about the 1.1260/70 resistance area last week and again on Sunday.
It’s the location of former ascending channel support as you can see below.
However, Friday’s rally made us question whether or not sellers would be able to defend the 1.1260/70 region as new resistance.
That’s why I wrote that I need to see more from sellers in Sunday’s forecast.
Monday’s price action was a good start.
The EURUSD opened the week with a gap down and has so far failed to close above Friday’s high.
As long as Monday’s high of 1.1283 is intact, I favor shorting the EURUSD.
If we see the pair take out that high at 1.1283, we are likely in for more consolidation and perhaps even a push back to resistance now closer to 1.1300.
Key support on the way down includes 1.1190 followed by the year-to-date lows at 1.1110.
Another option for entry instead of simply shorting at the current price is to keep an eye on the short-term trend line that extends from the July 9th low.
The pair is currently hovering just above that trend line, and a close below it could send EURUSD lower.