EURUSD Descending Channel Offers New Boundaries

by Justin Bennett  · 

February 18, 2019

by Justin Bennett  · 

February 18, 2019

by Justin Bennett  · 

February 18, 2019


Yesterday I mentioned the potential for a EURUSD bounce this week.

While it’s still early, the euro has caught a bid so far today. The single currency is up 30 pips following a relatively bullish Friday candle.

It wasn’t what I would call a pin bar due to the longer upper wick, but Friday’s session did signal an influx of buying pressure around 1.1250.

That buying pressure was a result of the retest of descending channel support. It’s a short-term pattern, but one that has driven the price action since late January.

However, this idea is more speculative than most.

The markets have been choppy so far in 2019, and the EURUSD has been one of the more difficult pairs to trade.

If you are going to take advantage of this short-term channel, you will want to limit your expectations.

I mentioned this yesterday, but a 100 to 150 pip target seems appropriate.

Given the price action over the last few months, aiming for anything more than that is unrealistic and unlikely to materialize.

Keep in mind too that Friday’s low of 1.1234 needs to hold.

That is not to say a move below 1.1234 is a selling opportunity, but the area does need to hold for buyers to have a fighting chance.

As for targets, the region between 1.1450 and 1.1480 stands out.

Get access to the same New York close Forex charts I use.

Last but not least, buying EURUSD is a counter-trend idea. So not only have conditions been unfavorable, but a buy here is against the momentum.

You’ll want to take that into consideration if you do decide to buy EURUSD.

Alternatively, those who still maintain a bearish outlook for the pair could watch for bearish price action on a retest of the 1.1450/80 resistance area.

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EURUSD descending channel on the daily time frame


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18  Comments

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  1. i agree it is now a days tough to trade in euro ,however i still believe other than technical which we follow market play with psychology of traders too , it is competition of trader and operates, long term prediction not possible but thank god it still follows chart pattern , everyone have own drawings of different indicators , i download 30 hr techniques of different specialists , the idea that clicked me is his saying it is a river , move in direction of market , even in short time frame it changes its course , , u cant stop its flowing in any direction ,,thanks , i personally assume it will move up in FOMC , to kill sellers ,and stop hunt ,then again will continue downtrend again ,, just prediction thanks

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