Daily Price Action
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EURUSD Targets 1.1830 Following Yesterday’s Breakout

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use.

On Sunday I pointed out a confluence of resistance on the EURUSD at 1.1660/70. It’s the intersection of wedge support and resistance. I mentioned this pattern on August 9th and again on the 15th when our target at 1.1300 was reached.

One reason I’ve favored the EURUSD lately is the way it’s respecting key levels. It’s been relatively predictable especially when compared to something like the indecisive USDJPY.

Here’s the exact EURUSD daily chart I posted in the member’s area on August 15th:

EURUSD channel

And here’s how the pair looks today:

EURUSD descending channel

You’ll notice that channel resistance is the same as wedge resistance I’ve posted several times in recent weeks. Using a single level to draw a channel can be an excellent way to find targets when trading wedge patterns.

You can learn more about this technique here.

Fast forward to the last 24 hours and you can see that instead of stalling at the 1.1660/70 resistance area, buyers sliced right through it. I’m not surprised though given how the single currency didn’t hesitate at 1.1500 either.

Since hitting our target on the 15th, the EURUSD has rallied more than 400 pips in just ten trading days.

The pair is also carving what could be a 400+ pip bullish pin bar on the monthly time frame. A lot can happen in the days that remain this month, but this is something I’ll be keeping an eye on moving forward.

Upon closing above 1.1660/70 resistance yesterday, the pair retested the area as new support early in today’s session. I decided to go long at 1.1670 with a stop below yesterday’s candle at 1.1585.

As long as the EURUSD remains above 1.1660/70 on a daily closing basis (New York 5 pm EST), I see no reason why the single currency can’t reach 1.1940. It’s a level I’ve had on my chart for quite some time.

It’s also just over 300 pips from the 1.1620 horizontal level which is the same distance as the range that developed between 1.1300 and 1.1620.

Alternatively, a daily close back below 1.1660 would negate the bullish outlook. It would also re-expose the 1.1620 support area.

Keep in mind that the pair may encounter a few sellers at 1.1830. It’s another level I’ve kept on my chart for several months now. The area served as a key pivot between May and mid-June. The 1.1740 resistance area is another one to watch over the next few days.

Last but not least, mind the daily mean as represented by the 10 and 20 EMAs below. No trend is without pullbacks, and with 150 pips between today’s price and the daily mean, the odds of a rotation lower are elevated.

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EURUSD support and resistance

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27 comments
Emuobo says

I must be getting better at reading charts being came to the same conclusion. Thanks for all the lessons. Cheers.

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    Justin Bennett says

    I have no doubt. Pretty soon I’ll need one of you to write these commentaries for me. 🙂

    Reply
zali says

TQ BRO

Reply
    Justin Bennett says

    You’re welcome.

    Reply
nadzuah says

nice justin

Reply
    Justin Bennett says

    Cheers.

    Reply
Roy says

Nice coach. Thank you

Reply
    Justin Bennett says

    You’re welcome, Roy

    Reply
Kayo says

You are a great Analyst. Thanks bro.

Reply
    Justin Bennett says

    Appreciate that. You’re welcome.

    Reply
joy says

could you tell me what EA you use

Reply
    Justin Bennett says

    I don’t use any EAs.

    Reply
sani says

Thanks Justin for these analysis is splendid .Please what is the range of distance between the EMA’S (i.e 10 & 20) and the current price to anticipate a pull back in a prevailing trend.

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    Justin Bennett says

    There is no one-size-fits-all answer. It depends on the market as well as current and recent conditions.

    Reply
Thanhha says

I’m always amazed at the way you use resistance and support. Simple and accurate but not easy to identify. Wish you the best.

Reply
    Justin Bennett says

    Cheers. Like most things, it gets easier with practice.

    Reply
saif says

sir please analaysis of crude oil and gold

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    Muhammad says

    Yes it will definitely be a favor if u discuss Crude and Gold also

    Reply
Tijani sheidu says

Bennett I can thank you enough keep the good work. I am looking forward to be part of your member area. Well done man.

Reply
    Justin Bennett says

    You’re welcome. Glad you’re finding value in the content.

    Reply
Henry Ifezue says

I am interested in learning this trade but I keep getting confused because of my inability to correctly read the chats and make good predictions. I have been losing money. I am yet to make profit since I started trading. What do you think I am not doing right?

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    Justin Bennett says

    That’s impossible for me to answer given the number of variables. Feel free to browse the 100+ lessons on this site.

    Reply
Arslan says

hiiii…i didn’t understand this..i will be so kind of u if u collaborate this..God bless u..thanks a lot
Last but not least, mind the daily mean as represented by the 10 and 20 EMAs below. No trend is without pullbacks, and with 150 pips between today’s price and the daily mean, the odds of a rotation lower are elevated.

Reply
Joel says

Justin I am impressed by your analysis. It has been helping me make some profit. However, what do you say about coorelated pairs? ie, GBPUSD, EURUSD and USDJPY. If I short GBPUSD and also short USDJPY since USD is the base currency in USDJPY won’t it be affected in how GBPUSD turns out since USD is the quote currency in GBPUSD? I wish you could respond to this as it gives me concern.

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derrick says

according to this analysis i went bull last night on eurusd

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