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.
On Sunday I wrote about the possibility of a 1.1410 retest for EURUSD.
You can see where this level served as resistance in February and March.
Tuesday’s session reached a high of 1.1411 before reversing and closing the day lower by more than 40 pips.
The EURUSD carved a bearish engulfing day in the process.
However, I would be careful trying to short the pair here. The euro appears to be attempting a broader reversal since coming off 1.1110 in late May.
It’s especially evident when viewing the weekly time frame.
I do think we could see some weakness in the short-term, though, perhaps into 1.1300 or 1.1260 if sellers can get behind yesterday’s bearish candle.
Alternatively, a daily close above 1.1410 would set our sights on 1.1560.
I’m going to give the EURUSD some space to see what it wants to do here.
This isn’t what I would consider an “A+” setup, especially when you consider how the weekly time frame is starting to perk up a bit.