weekly fx forcast from justin bennett

There’s no shortage of recent EURUSD commentary on this site. Just last Friday we discussed the importance of the 1.1875 resistance level. We also reviewed what could be a three-month head and shoulders pattern forming on the daily time frame.

If you missed these recent posts, I suggest you review the commentary from the 3rd of October. It sums up why I turned relatively bearish here in mid-September.

As long as 1.1875 resistance holds on a daily closing basis (5 pm EST), I will maintain a (slightly) bearish bias. Only a daily close above this level would negate the bearish outlook.

I do anticipate an influx of buying pressure if the pair moves to retest 1.1670 support. But if sellers manage a daily close below 1.1670, it would open up a whole new list of downside targets.

The first on that list is 1.1490. A close below 1.1670 would also open up the measured objective just below the 1.1300 handle. That’s a sizeable 480 pips from Friday’s close.

All of that sounds promising for bears, but keep in mind that nothing is confirmed just yet. A market is range bound until it isn’t. So until the EURUSD closes above 1.1875 or below 1.1670, I expect more range bound price action.