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EURUSD Tests Support Turned Resistance at 1.1670

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The EURUSD is in the process of testing former support at 1.1670 as new resistance. It took the single currency five days to do so following the October 26 close below the 1.1670 handle.

Today’s retest puts sellers in the hot seat. As long as they maintain sub 1.1670 prices into today’s close at 5 pm EST, the bearish outlook we’ve been discussing will remain in play.

However, if the EURUSD closes the day above the level, all bets are off for a move lower. It would also negate the head and shoulders pattern that has been developing over the past three months.

It’s moments like this when the daily charts become essential. Anything that happens before 5 pm EST is inconsequential as far as I’m concerned. That’s especially true given this week’s parade of high-impact news.

As long as 1.1670 holds as resistance on a daily closing basis, I will keep my target of 1.1300. Keep in mind, however, that I do anticipate an influx of buying pressure at 1.1490 if tested over the coming sessions.

Friday’s non-farm payroll at 8:30 am EST should also factor into your decision making process. I’m going to hold my short position through the event, but I also have a 190 pip buffer at the time of this writing.

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EURUSD new resistance level on the daily time frame

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23 comments
Darius says

what about 1.169 level? I have it on my chart aslo, and I thought to negate – bearish trend, it has to break this level.

Reply
    Justin Bennett says

    If that’s the level you have, then that’s what it is for you.

    Reply
      Mark Donaldson says

      Looks like Bears are going to stay intact……

      Reply
        Justin Bennett says

        For now. Next test is NFP at 8:30 am EST.

        Reply
Tims says

Thanks Justin. I got my eye on this too.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Jaime says

we don’t need to see a candle reversal to trade that right? A bounce off resistance is already ok?

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    Justin Bennett says

    Only you can answer that.

    Reply
Gerrard says

Your analysis is duly noted

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ashik says

Thanks,,,,,perfect conception. i accept this and apply….

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harvestBig says

Honestly you are a genius, ever since have been following your tips it has really improved my trading, i don’t longer trade like a blind man. thanks for the good and selfless service.

Reply
    Justin Bennett says

    That’s great to hear. Let me know if you have questions.

    Reply
Thompson samuel says

Good analysis Justin .It like the resistance is still holding i think is time to sell. What do you think ?

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    Justin Bennett says

    Thanks. That’s up to you.

    Reply
Alfonso Furlong says

Good night from México. All your post are great, i’m learning a lot & have good profits beacuse your advices, thanks very much. I appreciate a lot that in this post you say what’s the direction of your trade. I’m in a short position since 1.16564, waiting for the retest. Well, good night waiting the profit

Reply
    Justin Bennett says

    Pleased to hear that, Alfonso.

    Reply
Khaya says

Hi there been paying great attention on this pair as well,with the formation of the head & shoulders and the close below the neckline with its pulled back too,i have my seat belt fastened for the short that seems to be in play soon “HOPEFULLY” keeping in mind what you mentions a close above 1.16700 level to change the plan,love you updates.

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Shibukumar says

Justin,I am a beginner. This is my first trade. It is now a good selling opportunity in EUR USD. I think there is a bearish pinbar forming in the resistance. Wait 4 ur advice

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Jesse Abah says

Please Bennett how do I apply buy stop , sell stop , buy limit , sell limit

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Boikanyo says

Hi I see that the pair is ranging, will it go down to test 1.149… support or retest the resistance

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ANNE PARTON says

Have been following your comments on E/$. Could you please explain your reasons for shorting @1.1875. Did you have a pending sell order sitting there at close of daily candle 11/10/17. Did you add to your position after break of support and retest @ 1.1710 thx

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beverly says

your resistance level is wrong

Reply
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