Today I’m going to show you exactly how I’m trading EURUSD this week, including key levels to watch and possible targets.
Plus, I’ll share the latest on the US Dollar Index (DXY).
Watch the video below and scroll down for the annotated charts and analysis.
EURUSD bulls are continuing where they left off last week with a rally on Monday.
We saw the euro hold above the 1.0844 key support last week, so we knew bulls would likely be in control early this week.
However, I’d be surprised if the 1.0950 area goes down without a fight.
This was a critical pivot in August, so an early-week move above this area may just be a liquidity grab before a pullback.
Furthermore, we’ve yet to see much of any retracement of last week’s candle, so we know there’s a sell-side inefficiency below 1.0844.
But shorting EURUSD here may not be so easy.
A liquidity grab above the 1.0950 region, followed by a confirmed fakeout would be the higher conviction short here, in my opinion.
Any EURUSD shorts are risky without a confirmed fakeout.
Alternatively, a sustained break over two or more days above 1.0945 would open up 1.1040.
That said, keep in mind that the DXY is testing its yearly open at 103.50 this week.
So attempting to short the dollar while above the 103 to 103.50 region is ill-advised, in my opinion.
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