Daily Price Action

EURUSD Wedge Pattern to Dictate Future Direction


The EURUSD is resting on a massive support level.

I first mentioned it on April 14th, but the trend line from the euro’s all-time lows in 2000 is the only thing keeping the currency afloat.

EURUSD monthly chart showing wedge pattern
EURUSD monthly time frame

If the EURUSD breaks that support on a monthly closing basis, a run at the 2015 to 2017 lows at 1.0500 is all but guaranteed.

And that could just be the start.

I’m still of the belief that a monthly close below 1.0750 sends the euro back to its all-time lows just above 0.8000.

Will it happen?

I don’t know the answer to that. Nobody does.

What I do know is that the EURUSD will remain vulnerable while below wedge resistance that extends from the March 27th high.

The 4-hour wedge below illustrates the recent consolidation.

With that in mind, you can see why the EURUSD bounced on Thursday as it was testing the bottom of this wedge pattern.

As for key levels on the way up, keep an eye on 1.0825 and 1.0890.

I remain short the EURUSD from last Friday, which I also announced in the Daily Price Action member’s area.

That position is currently up 160 pips. I’ll look to add to it following a break of the multi-decade trend line above.

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

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EURUSD 4-hour wedge pattern
EURUSD 4-hour time frame

Leave a Comment:

Justin Bennett says

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Thanks for sharing your thoughts. Doesn’t the structure on the 4hour chart of EURUSD qualify for a perfect inverse head and shoulder?

    Justin Bennett says

    No, not in my opinion.

Tony says

Please can you help me with EURAUD setups

Imran says

Sir how to trade with moving avarage 10 ema and 20 ema. Please send me details about this two avarage ❤

    Justin Bennett says

    Use the search bar on this site.

nadzuah says

i always follow sir justin specially eurusd

ali says

Thanks for the update sir justin.

John says

Does it mean that 1.08255 and 1.0890 are resistants

    Justin Bennett says

    It means they are key levels.

Teddy says

A close for upper line exposing upper wedge, and lower line will expose lower wedge, and J trying to imply uncertainty coz our financial market lose its “sanity” long ago(lol)

    Justin Bennett says

    Thanks for sharing, but I have no idea what that means.

Haseeb khan says

Hey Justin, great stuff. Thanks for the analysis. I wanted to try out Blueberry Markets but unfortunately they don’t have Canada as an option in country of residence. Do you have any other suggestions? I’m currently looking at Forex.com.

Smith says

I believe that’s an inverse head and shoulder on the 4hr chart especially, I have a trendline break through the neckline, the thursday candle shows rejection on the retest of the trendline, also the 1.0825 mark has already been broken (now support) and I see a few candles testing it as the mini consolidation happens, again the dollar is in no position to oppose the up move right now in my opinion. P.s. I really like your forecast, I found your channel a month ago, keep up the good work.

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