Daily Price Action
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Weekly Forex Forecast (February 11 – 15, 2019)

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EURUSD bulls lost ground every day last week.

However, if the last four months are any indication, this may only be a temporary selloff.

EURUSD has been mostly range-bound since October of last year. The majority of that time was spent between 1.1300 support and 1.1500 resistance.

But there are no guarantees that the 1.1300 support area will hold. Look no further than the November 12th selloff.

Keep in mind that EURUSD has also been trending lower since this time last year, so the momentum still favors sellers.

I won’t do anything here until I see a break from the current range.

That said, bullish price action this week from 1.1300 could present an opportunity to take advantage of this 200 pip range.

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EURUSD support and resistance levels

The GBPUSD rally that began January 3rd may have come to an end.

After breaking above resistance on January 25th, the pair retested the area as new support between January 29th and February 1st.

However, buyers failed to hold the pair above the level on the 4th.

I use New York close (5 pm EST) charts to confirm breakouts. These charts are required for trading price action.

Click here to get access to the same charts I use.

That led to a drop of 180 pips last week followed by a retest of 1.2885 support.

We could see a further bounce this week, but the 1.3030 resistance area may limit gains.

It’s going to take a daily close below 1.2885 to expose the next key support at 1.2700.

GBPUSD support and resistance areas

USDJPY continues to consolidate following the January 3rd flash crash.

We had a great run in December and USDJPY was one of our best trades. The wedge that broke down in mid-December played out perfectly.

Moves like the one in early January tend to act as a natural pause button for the market. Things can slow down for weeks or even months.

In my opinion, the January 3rd flash crash is the primary reason the market has been relatively slow so far in 2019.

There’s no telling how much longer it might last. However, technical patterns like the one below could offer clues.

What’s interesting about USDJPY is the less steep resistance level you see below.

The pair is not carving an equidistant channel. Instead, it appears to be forming a rising wedge pattern of sorts.

Either way, a close below support could open up downside targets. Those include 107.60 followed by the year-to-date low of 105.60.

Important: New York close charts are required for trading price action.

Click here to get access to the same Forex charts I use.

Bear in mind too that this pattern could be in its early stages. It may take another few weeks before we see something favorable materialize.

I may also need to adjust the levels you see below depending on how USDJPY reacts to both support and resistance over the coming sessions.

But for now, the pattern looks promising especially given how sleepy the markets have been so far this year.

It’s going to take a daily close below support near 109.00 to expose 107.60. A daily close below that would open the door to 105.60.

On the flip side, a retest of 110.30/40 resistance this week would attract sellers.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

Click Here to get access to the same charts I use.

USDJPY consolidation on the daily time frame

EURJPY is another yen pair that has been consolidating since the January flash crash.

However, Friday’s close may have opened up downside targets.

If the former wedge support level below is significant, we could see sellers defend it this week.

The pair is also back below the 124.90 horizontal level. I’ve mentioned this area several times in recent weeks.

On top of that, EURJPY carved a bearish engulfing pattern last week (weekly time frame). That alone could be enough to push EURJPY lower this week.

As for targets, keep an eye on 122.60. It’s the close of the January 3rd flash crash and, of course, the January 4th open.

A close below that could extend EURJPY as low as the 119.00 area.

EURJPY consolidation on the daily chart

I mentioned CADJPY a couple of times last week.

The first commentary on the 4th focused on the confluence of resistance near 83.80.

Two days later, CADJPY was down 100 pips and testing channel support at 82.70.

I pointed out this support area again on Thursday. The idea was to watch for a daily close below it followed by a retest of the area as new resistance.

It looked as though CADJPY bulls would close the pair back inside this channel before the weekend.

However, a late Friday push from sellers kept the area intact as new resistance.

That means the idea for this week is unchanged. As long as the pair remains below 82.70/90 on a daily closing basis, sellers are in control.

Key support comes in at 80.55 followed by 78.70.

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CADJPY bearish consolidation pattern

Leave a Comment:

37 comments
LwinOo says

Thanks Sir.

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Thabang says

Thanks a lot Justin.

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Khulekani says

Thank you very much Mr Bennett you the best,i made alot of money from Gold last week.

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Dee says

Thank you sir

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Follower says

This is beautiful

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Anas says

Excellent analysis, thank you

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Omodara says

Thank you sir

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    festus says

    hi omodara i perceived you are a nigeria, i got to know you thru justin benett platform,can we exchange ideas on forex.

    Reply
      IBRAHIM MUHAMMAD says

      Hi Festus and Omodara,
      am also a Nigerian.
      It seems Nigerians are well represented here.
      Lets keep it up, we shall all succeed.

      Reply
        ibrahim says

        hi ibrahim,,,,,,can we share forex idea together on telegram@08109007665…..my name is ibrahim

        Reply
Zulfikar Ali says

Thanks a lot Justin sir!!

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Mongameli says

Thank u very much, i am each day becoming a better person, God bless you

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Edmond Attachey says

The best analysis I’ve come across

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Macmillan Morero Morero says

Mr Bennett you’re the best…..

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Ijaz says

Great sir

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Chicherem says

Thank you sir. I have been enjoying your set-up. Remain blessed.

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Andrei says

What is your preference for EURUSD on 1.1300?
Up or down?

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Hong says

Thanks you

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Uzoma Nnamdi says

Thank you. I always look out for your weekly commentary

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Kool Kombi says

terimakasih om

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Adebayo saheed says

Am becoming better every day with your analysis….keep it up brother

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Indrajith says

Super

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fawaz bamakrait says

thanks justin .

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Ngo Ha says

Thanks so much Mr Justin Bennet.

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Felix says

Thank you very much Justin

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Ali Easa says

Thank you a lot Justin, I would like to work under your family

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derrick says

thanks very much sir so is it prudent to go short on eurusd

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Joel says

thanks Justin

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Sumantra kumar halder says

Wonderful presentation

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Themby says

Thank you Justin

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Austen says

Thanks a great deal.

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Chan says

Hi Justin, could you do the analyze for oil on your weekly forecast? Thanks

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Abiodun says

Thank you Sir

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Jacob says

Thank you Justin for every analysis.
However, now that EURUSD has broken 1.1300 support, what else can we look for please?
Secondly, as you said that EURUSD, last year, traded similar or same low, how low did it trade please?
Thank you.

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Samuel says

Thanks very for the week analysis.

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Benjamin says

Thanks for sharing your greate ideas. I found it very interesting and understanding how you analyze the market. Keep up the good work and much appreciate what you are doing sir.

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