Today I’m going to show you exactly how I’m trading EURUSD next week.
I’ll also share the latest on the US Dollar Index (DXY), and what this week’s reclaim means for the dollar in October.
Watch the video below and scroll down for the annotated charts and analysis.
EURUSD reversed sharply lower this week after testing the channel resistance I’ve shown on my chart for weeks.
The resistance level at 1.0630 was also my target following the 1.0450 retest of channel support earlier this month.
I called out both areas in our free Telegram group.
I did think there was a decent chance of a more significant relief rally this week as the US Dollar Index (DXY) was breaking below channel support.
See the video above for all the details.
However, the dollar reclaimed that key level on Thursday in epic fashion.
With that dollar reclaim and the EURUSD selloff from resistance, it seems a continuation of this descending channel is in order.
Key support levels for next week include 1.0488 and 1.0450, but a sustained break below that opens up the pivot from 2022 at 1.0355.
As such, I favor EURUSD shorts while below 1.0532 on a daily closing basis.
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