Forex Strategy for EURUSD (Oct. 10, 2019) | Euro Finally Breaking Out? ?

– [Justin] Is the EUR/USD
finally breaking out? As of right now, the answer is yes, but buyers still have more work to do. Hi Forex Traders, my
name is Justin Bennett with Daily Price Action. And in today’s Forex Forecast,
we’re gonna talk about the EUR/USD, I’m gonna
tell you what buyers have to do today, to break the pair out and also some key levels
to watch on the way up, let’s get to it right now. (upbeat electronic music) Before we get started with
today’s Forex analysis, be sure to hit that subscribe button below and also click the bell
icon so you get notified every time I post these videos. So for those of you who trade the Euro, today is a big day, at least so far. Because right now, the EUR/USD
is trying to break free from this descending channel that we’ve been talking about for weeks. And within this period of time, the pair has moved lower
by several hundred pips. Now I mentioned this
back in mid-September. And also I discuss it again on Saturday how I’m not a fan of selling the Euro, I haven’t been since it closed below this 1.0990, perhaps 1.10 area. And the reason for that
is this support region down here around 1.09. So we’ve been talking about this now for again, for weeks, and you can see how the EUR/USD has formed this
broader descending channel and again you can go back
through any one of the videos in the last few weeks and see
that I’ve been talking about this support level right down here that could trigger a bounce higher. So fast forward to today, and
you can see that the EUR/USD is in fact bouncing from
that 1.09 support area. And furthermore we saw another retest of that 1.0990 level earlier this week, but again, I didn’t wanna sell this because the pair started moving sideways right below that area, so
buyers were not backing down from this level, which
did signal the likelihood of a push higher which we’re seeing today. Now here’s where buyers
still have more work to do. If you’ve been watching
me for any length of time, you know I trade on a daily closing basis, so everyone of these candles
on the daily timeframe, the closing price is 5 p.m Eastern. So that means this close
right here was 5 p.m Eastern, this close was 5 p.m, and
today’s we haven’t seen yet. Okay, so where this candle closes today, is going to be incredibly significant for this breakout attempt,
because if we see a daily close back below this 1.10 area. So right through this region,
if we see a daily close below this area, it could
keep the Euro under pressure for longer and it could even trigger a reversal back down here
to the support areas. On the flip side if we get a daily close above that 1.10 area, it would
mean that this 1.0990 area would become a confluence of support. Because again, a confluence
is an intersection of two or more levels on the market. And in this case we have
the 1.0990 horizontal level. As well this descending channel top, okay. So just to clarify, a
daily close above this 1.10 would mean that this area becomes support, so a rotation into it,
could attract buyers and push us up into 1.1070
that I’ve been talking about for several weeks now. Whereas a daily close below
1.10, so a daily close back inside this descending channel, could keep the Euro under pressure. Re-expose these lows through
here, as well as this region. All right, so it’s all gonna come down to today’s 5 p.m Eastern close. So what do you think, can
the EUR/USD close above 1.10? Go ahead and leave your comment below with either above or below
to let me know your thoughts. Now if we do get a daily
close above that 1.10 level. I’ll be watching for a
pull back into this 1.0990 confluence of support,
which could offer a buying opportunity up to, as I mentioned
a little bit ago, 1.1070, with a daily close above that,
exposing this 1.12 region. So we’ve talk about this one
as well for the last few weeks and you can see how it acted as support back through this region,
before flipping to resistance right through this area. Keep in mind too, that
there are no guarantees in this business, so even
if we get a daily close above this level, that is not a guarantee that 1.0990 will attract buyers. Okay, there are no
guarantees in this business. So we could get a close at
the high of today’s candle followed by a close tomorrow or the next day right back below it. And if that were to occur, I would see that as a false break, which could also offer
a selling opportunity, back down here into
the 1.09 support level. That’s also important to keep in mind, when you’re position sizing,
because you don’t wanna go into this thing and
risk 5% of your account thinking that just
because this candle closes above this area, that all of a sudden the EUR/USD is gonna move higher. Okay, there is no is or
will in this business, it’s all probabilities never guarantees. But as of right now, a
close above this level, would have me watching
for a buying opportunity around 1.0990 for a move up to 1.1070, with a daily close above that,
re-exposing the 1.12 region. Alternatively, a daily close
back inside this level, followed by a close back below 1.0990 could setup a move lower back towards these recent lows here. Or perhaps even down to
the 1.09 support level. If you enjoyed this video,
give it a thumbs up, leave your comment below
and be sure to subscribe to my channel, see you next time.

42 thoughts on “Forex Strategy for EURUSD (Oct. 10, 2019) | Euro Finally Breaking Out? ?”

  1. There are high chances of it going to close above the channel otherwise you also need to chech the GBPUSD

  2. Hi Justin,LoL once again just my 2 cents. watching the 4 hour looks like a test of resistance turned support is currently happening. waiting for daily close though (Thanks for the great analysis !)

  3. Thanks for stopping by! Subscribe here: to be the first to watch new Forex videos, and leave your comment below. 🙂

  4. Awesome Justin.You do always brief your strategy in depth which helps us to understand the market scenario.All the best

  5. First time watching your Ytube channel.
    Love the way you explain the market.
    I strongly believe it will close above the trend line. Thanks

  6. At this point it's very difficult for me to see EURUSD trending up, EUR is reacting as a risk asset motivated by ECB minutes today and optimism by the US/China trade war, in the USD side, today we had CPI weaker than expected and this is in line with the sentiment of another rate cut by month end, but Powell has repeated several times that no cut will be made. In any case between today and tomorrow US and China will be holding important meetings where is expected to finally sign something, if this happens and the market sees a positive outcome (which is highly possible) then probably EURUSD will keep trending down and market will change expectations to US/EU trade war. ECB is expected to keep its Asset Purchase Program unlimited, this is very bearish for the EUR, the market is watching 1.10 as a pivot point and even if we get a bad outcome from US/China I don't see EURUSD above 1.11

  7. Hi Justin and thanks for this video. I agree with you.Today(Friday in Australia) will be important to see where price will go. I use a EMA(200) and EMA(50) for trend direction and seems the downtrend bias still in place. The TL is close to a Fibo(50) and in my view this could be a false break out.Today price opened on top of the TL and depending what the ECOFIN meeting results we may see some move. I have this pair short opened last Tuesday and I hope the EMA(50) keep rejecting any up move. Anyway I will be looking the levels you mentioned. Thanks again for your analysis.

  8. on my trading view chart it closed @ 1.1006 on the daily. on H4, it closed as far as 1.1023 but has gone down below the vertical trendline support and just sitting slightly above the diagonal trendline/support @ 1.1007. on H4, it looks like a nice break out and retest of the diagonal support but i would like to see it bounce back up and close above the vertical support as well later today for a strongler confluence as taught by Justin. On the other hand, EURGBP suddenly had a massive drop of around 170pips. How will this affect EURUSD? (newbie here in fxtrading).

  9. great bro last two week your are change my life in forex GOD bless you, your all tips EURgbp,gbpcad is very nice

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