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EURUSD Trend Line Could Offer Clues

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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.

Today marks the sixth straight day of consolidation for EURUSD.

The pair hasn’t made any real progress one way or the other since the 100-pip rally on August 5th.

But as I wrote on Sunday, consolidation doesn’t last forever, and the EURUSD is no exception.

As a general rule, longer periods of consolidation tend to trigger a more aggressive breakout.

One level that could offer clues comes on the 4-hour time frame.

Notice the descending trend line that extends from the late-June swing high.

This level connects with the June 28th highs and has capped every advance starting with the August 8th session.

A close above this level could put an end to the sideways movement of late.

It may also expose the next key resistance area at 1.1280.

Usually, this type of pressure on a resistance area leads to a break higher.

So far, I have no reason to believe that won’t happen here.

But until we see buyers take control as they did on the 5th of August, the EURUSD will continue to be a difficult and even unfavorable pair to trade.

Key support comes in at 1.1160.

If that level fails, we could see EURUSD unwind toward that previous breakout level at 1.1110.

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EURUSD trend line resistance

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9 comments
Justin Bennett says

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    MUHAMAD RASYID says

    Thanks master…good info😃

    Reply
      Justin Bennett says

      You’re welcome.

      Reply
Praise says

always gratefull.Sir

Reply
IDOGEI emmanuel says

Your analysis are always on point.

I didnt get a reply on my last question about position sizing. Do u always calculate it compulsorily on every trade you place?

Reply
    Justin Bennett says

    Yes, but generally I know how much I’m risking without having to use a calculator.

    Reply
rahman says

Why You change the resistant and support sir ?

Reply
    Justin Bennett says

    It seems silly for a trader to keep levels the same when the price action on the chart is always changing.

    You need to adapt to the price action as it unfolds. Otherwise, you’re ignoring what the market is trying to tell you.

    Reply
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