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EURUSD Tests Confluence of Resistance at 1.2150

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The EURUSD is once again on a tear. After beginning the week with a pullback into the 1.1930/40 support area, Euro bulls have catapulted the pair higher by more than 200 pips.

Friday’s surge gives us a new multi-year high. We have to go back to December 2014 to find the last time the EURUSD was trading above 1.2100.

However, today’s rally also puts the confluence of resistance at 1.2150 in focus for next week. I mentioned this area on January 4 and again over the weekend.

The 1.2150 area is the intersection of channel resistance that extends from the November 2017 high and a region that served as key support between May and June of 2010.

On top of that, 1.2165 is the 50% retracement from the 2014 high at 1.3993 to the 2017 low at 1.0340.

Now, this doesn’t mean the EURUSD is about to selloff or that I’m interested in selling. There’s far too much bullish momentum at the moment to warrant that kind of talk, not to mention a lack of bearish price action.

This is merely an area of resistance to keep an eye on as we head into next week. And if the EURUSD closes today’s session above the 1.2070 handle, the level will likely attract buyers if tested.

While it doesn’t appear likely, if the single currency closes today back below 1.2070, we could see a return to the 1.1930 area next week. But as of now, it seems Euro bulls have other intentions.

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EURUSD confluence of resistance on daily chart

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25 comments
jabirlaasri says

Hola señor daily
Buenas tarde
Escribir enviar mandar
Todos saludo

Reply
    Justin Bennett says

    Please translate into English and I’ll respond.

    Reply
Asif khan says

Hi,what is the reason of eurusd to got the high position? And it going more and more up side?

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    Justin Bennett says

    I would say, but you’re bound to find more information by doing a quick Google search for EURUSD. I don’t get into fundamentals on this site.

    Reply
taram says

dear coach, i kinda miss the kiwi dollar analysis, some idiot tell me that it is in the 4th wave correction…but i am blurr of what it is doing now….could you kindly look at it from your perspective , is it a reversal or still a correction. thank you although i know you do not entertain request. bye

Reply
    Justin Bennett says

    I’ll wait for the day to close before commenting.

    Reply
david ampofo says

yes i take my notes is good for everyone who is doing trade work.

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Fartun says

Wat is this ican not sure what time do their need

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TripTrap says

Hello Justin…..excellent analysis!!

Thank you for bringing the 50% retracement to my attention from the 2014 high to the 2017 low. You also mentioned the key support that occurred between May and June of 2010. Of course that same key support was also tested again in July 2012 making this area of resistance / support even more significant. It’s hard to imagine the Euro motoring up through here without some kind of retracement.

On the other hand one possibility is this Sunday night (Jan 14th) we get a gap up opening. It should be a thin market as it will be Martin Luther King day on Monday here in the states. Also if you look carefully at the charts for Jan 4th 2015, in this same price area, we had a gap down from a Sunday night opening. That breakaway gap finally got filled 2 1/2 years later right at the top of this past summers EurUsd rally. Coincidence the Euro rally stopped there? I don’t think so…gaps are like magnets.

I will be very interested to see where we end up closing today. If near the top of today’s range the above gap scenario is a real possibility. If not would be surprised if we don’t get some kind of resistance / retracement that you spoke about in the early part of next week. Fun stuff!!

Enjoy your weekend!

Reply
    Justin Bennett says

    I’m onboard with that. Thanks for sharing.

    Have a great weekend!

    Reply
    TripTrap says

    Okay…so we closed today very close, 18 pips, from the top of today’s range. If there is a gap up Sunday night it will be interesting to see if it gets filled right away or if it remains open. If it remains open it could turn into a breakaway gap like we had back on Jan 4th, 2015. That one ran for almost 1500 pips before hitting a real bottom. I’m NOT saying that this same scenario will play out here going up. Just be aware that there is a possibility of it happening. A more likely scenario is we get a gap up on the Sunday open and it gets filled within an hour or two and we get some kind of a reversal / retracement that Justin spoke about at this level. But there is no doubt about it, the momentum right now for the Euro is up up up…

    Reply
      Mohammed Abdul kadir says

      How can find the work you are doing

      Reply
fanisi tolulope says

I must that was a top-notch analysis up there. If the price refuses to close below 1.2070…that should open up a selling opportunities..

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Milan says

What is going on ??? Resistance 1.250 ???

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    Justin Bennett says

    It says 1.2150, not 1.2500. It might hold, it might not. I’m certainly not selling up here, but then I said that in the post.

    “Now, this doesn’t mean the EURUSD is about to selloff or that I’m interested in selling. There’s far too much bullish momentum at the moment to warrant that kind of talk, not to mention a lack of bearish price action.”

    Reply
nazmun says

sir can tell me pl about eurnzd?

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Mohammed Abdul kadir says

How can find the work you are doing at now

Reply
Mohammed Abdul kadir says

Can you please send me your work at the moment and if I can communicate with you online with the world I and if I can also join you with the work okay

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anwar says

nicenice bro

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anwarhabib says

bbbbbro when u uplood chart plz mention sl and tp nessery

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anwarhabib says

bro when u uplood chart plz mention sl and tp must thnks

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Prasanna says

Hi sir : start a wsp gp. My cell 9892314929

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shahbaz says

nice

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zafar says

awesome trades setup….

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Haitham says

Haitham 0796550851

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