Today I’m going to show you exactly how I’m trading EURUSD.
On Wednesday, the US Dollar Index (DXY) suffered the year’s most significant breakdown, sending EURUSD above the recent 1.1100 resistance area.
Today’s video focuses on the DXY breakout and what it means for the euro, including key levels and targets in 2023.
Check out the EURUSD video below and scroll down for the annotated charts and analysis.
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EURJPY has had an incredible run, gaining an impressive 1,800 pips since March.
We’ve seen similar moves from other Japanese yen pairs in recent months.
However, EURJPY did something this week that could trigger a pullback in the second half of July.
Notice on the three-day time frame above how EURJPY closed above the 2020 ascending trend line in June, but bulls failed to hold it as new support this week.
This confirmed fakeout could trigger a correction later this month, with new resistance coming in between 156.00 and 157.00.
That said, you have to be careful shorting a market with this much bullish momentum.
Furthermore, the March trend line support at 154.30 is likely to attract buyers next week.
So the “safer” way to short EURJPY may be to wait for a sustained break below the March trend line.
Of course, waiting for a trend line break means a less attractive risk-to-reward ratio.
I’ll wait to see what kind of price action we get from the 156-157 resistance area, but a bearish signal from there could offer a favorable opportunity to get short.
As mentioned above, the other option is to wait for a sustained break below the March trend line.
Key support for EURJPY comes in at 154.30 (March trend line), 151.00, and 147.00.
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