November 19 2021
Earlier this week the EURUSD attempted to break down below 1.1300 reaching 1.1265. However the break failed and the EURUSD recovered quickly.
This was a signal for some profit taking on long USD positions. The question now is how much further can this correction go?
I prefer to use Point & Figure charts when looking for areas of support and resistance they give a much clearer guide for support and resistance levels with entry and exit points.
On the P&F chart we can see the break and recovery of 1.1300 support, which triggered some corrective price action. However, we now have immediate resistance at 1.1380, while this level holds there is a risk of renewed EUR weakness to 1.1330 and possible 1.1300.
Should the EURUSD manage to break 1.1380 resistance, I would expect to see further gains to 1.1430. There is a possibility that the EURUSD could reach 1.1480 In this corrective phase, before the dominant USD takes back control of the market and heads back to test the low 1.13’s.
What ever you trade make sure you practice good risk management, and protect your hard earned capital. Good Luck.