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EURUSD has been a difficult pair to trade lately.
Neither buyers nor sellers have managed to push the pair into a trend since the price dropped below ascending channel support on July 5th.
You can see where EURUSD has encountered buyers near 1.1200 and sellers at 1.1280.
But despite this range, I have to favor selling breakdowns.
That’s because the euro has been trending lower since February of last year. And as of now, I have no reason to believe that’s about to change.
With that said, I don’t like the idea of getting short here until we see a continuation of that trend.
In other words, I need to see more from sellers.
If anything, I would favor selling pops into 1.1280 or a daily close below the 1.1200 support area.
If buyers do manage to push the EURUSD above 1.1280, though, we could see the pair gain momentum toward the 1.1400 resistance area.
Similar to EURUSD, the GBPUSD hasn’t been the most attractive pair lately.
Not only has the pound been in consolidation mode, but it also isn’t respecting key levels the way I’d like to see.
As such, I’m not interested in trading GBPUSD this week, at least not without some confirmation from sellers.
If the pair catches a bid from the 1.2480 area this week, we could see prices trend higher toward 1.2760.
However, keep in mind that the 1.2600 region could attract a few sellers as well.
The NZDUSD has been a swing traders dream in recent weeks.
I’ve had the 0.6490, 0.6590, and 0.6720 areas on my chart since April.
As you can see, the pair has respected all three levels incredibly well since that time.
With NZDUSD now above 0.6720, I would expect to see buyers defend the area as new support.
As such, I’ll be watching for a rotation lower into 0.6720 followed by bullish price action as confirmation that buyers are willing to buy at these elevated prices.
Key resistance comes in at 0.6820.
On July 12th I wrote about a potential breakout opportunity on EURJPY.
The pair has now spent more than two months consolidating within this 240 pip range between 120.90 and 123.30.
When I wrote about this on the 12th I was favoring a downside break.
Here’s what I wrote:
In the case of EURJPY, I like the idea of shorting the pair following a daily close below range support at 120.90.
The reason for this is two-fold.
On the one hand, the EURJPY has been trending lower since February of last year. As such, I favor selling the pair until the trend changes.
And on the other, EURJPY appears to have failed to rally off of last week’s low. You can even see how Friday’s candle has engulfed the previous day’s range.
All in all, the pair looks primed for a move lower next week.
However, I have to stress the importance of waiting for the breakout and retest to occur first.
As long as EURJPY is hovering around this 120.90 level, the pair is going to continue to attract buyers.
A close below range support this week would expose the 119 region.
EURCHF broke below a significant support area last week.
Before Friday’s session, the pair had been consolidating above the 1.1060 area since dropping below it on June 20th.
Friday’s breakdown suggests that any retest of the 1.1060 region this week could offer a favorable selling opportunity.
Key support comes in at 1.0980. This area has served as a pivot for the pair since August of 2016.
As long as EURCHF remains below 1.1060 on a daily closing basis, I favor selling strength.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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