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EURUSD bulls may have met their match on Friday.
As you may know, I was selling EURUSD back on April 15th and again on May 1st.
I announced both of those entries in the DPA member’s area.
However, I went in short again later in May, and that position didn’t do so well and resulted in a small loss.
Since that time, EURUSD has gained a mind-bending 500 pips in nine trading days.
But has the euro moved too high too fast?
If we look at the daily time frame, I could make a strong case for a pullback at or around that 1.1400 mark.
In fact, I even shorted the EURUSD earlier today above 1.1300.
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It’s an entry I announced in the member forums.
To be clear, my size here is a fraction of my long USDJPY position that I’ve had on for weeks and is now 270 pips in profit.
Said differently, I have a lot more conviction in my USDJPY long than any EURUSD short at current levels.
As for the euro, time will tell if buyers are exhausted at current levels.
If not, and the EURUSD blows through that 1.1400 area next week, watch for a retest of that multi-year wedge pattern near 1.1600.
The structure above is the one I’ve had my eye on for months.
Any retest of the top of that wedge near 1.1600 could be the beginning of an asymmetrically skewed short opportunity.
We’ll see what happens, but for now, key resistance comes in between 1.1340 and 1.1380.
Support resides near 1.1230 with a break there exposing 1.1150.
Disclaimer: I hold a EURUSD short position from 1.1322.