EURUSD: 3 Keys to Trading Today’s Selloff

The EURUSD is sharply lower today following a European Central Bank (ECB) rate decision and press conference.

However, the big story is the EURUSD and DXY technicals I’ve discussed all week.

In today’s video, I share the latest on those charts, including key levels and targets and even a EURUSD short I put on earlier this morning.

Watch the video below and scroll down for the annotated charts and analysis.

The EURUSD is selling off today from a resistance area I’ve discussed this week.

We saw the euro fall below its October trend line on Tuesday, sweep the highs during Wednesday’s PMI, and now follow through on Thursday’s ECB rate statement and conference.

This is what we were anticipating from resistance, so I opened a short earlier in the day and announced it in real-time to VIP members.

I’ve remained bearish on the EURUSD and bullish on the DXY since January 2nd.

That’s the day the DXY reclaimed 101.90 and EURUSD failed to hold above 1.1000.

Fakeouts like the one on EURUSD at 1.1000 often trigger extended moves in the opposite direction.

That’s what we’ve witnessed so far, and I don’t think it’s over.

However, the DXY still needs to reclaim 103.50 on the higher time frames to flip that to support and expose 104.20.

Until then, you have to be cautious with euro or pound shorts, in my opinion.

Lastly, DXY 104.20 is the area to watch in the coming days.

Not only is it significant resistance, but it’s also structurally critical, as a sustained break above in the coming weeks would flip the recent trend from bearish to bullish.

In summary, I’m short EURUSD from 1.0895, as mentioned in our VIP group, and will remain bearish on the euro while below 1.0900 on the higher time frames.

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