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EURUSD Top in Place?

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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.

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.

If you haven’t seen my recent USDJPY posts, be sure to check out the one from May 26th and June 2nd.

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.

EURUSD monthly wedge pattern
EURUSD monthly time frame

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.

Want to watch the EURUSD video I just released in the member’s area?

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EURUSD daily ascending channel
EURUSD daily time frame

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9 comments
Justin Bennett says

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Ishanka says

Thanks a lot sir

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Nadzuah says

Hello…..good morning thanks for the setup
How about eurjpy?
Next week its pullback

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MDUDUZI says

GOOD DAY JUSTIN .I AM INTERESTED IN DAILY PRICE ACTION FORUM. SO NOW FOR ME TO JOIN I MUST REGISTER WITH BLUEBERRY AND FUND MY ACCOUNT? PLEASE HELP ME THANK YOU

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    Justin Bennett says

    No, opening an account with Blueberry Markets is optional. You can use any broker you want, but I do recommend five-day charts where each daily session opens and closes at 5 pm EST.

    Reply
Kim says

good

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Allan Ehritz says

I am in the process of getting a brokerage with “Interactive Brokers”. When I’m accepted can I use your services?.

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Olusegun Isaac says

RE:EURUSD
Dear Justin
What a good analysis!. However, from my Elliott wave and inter-market analysis of DOLLAR INDEX(which is inversely correlated to EURUSD) i am still expecting final leg up of wave ((v)) of C correction.Towards this i think double zigzag is probably unfolding now in 15min & 30min charts.This completion might take the form of a spike in daily chart.Thanks

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