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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The EURUSD is up over 200 pips this week, and yesterday’s DXY breakdown suggests the rally isn’t over yet.
On Tuesday, I mentioned the EURUSD long from 1.0970 to Daily Price Action members with a 1.1140 target.
Here’s the analysis I shared with members:
EURUSD hit our 160-pip target, and I don’t think this rally is over yet.
One reason the EURUSD could reach even higher levels in July is due to Wednesday’s massive breakdown from the DXY.
We saw the dollar index smash below the previous year-to-date lows at 100.80.
I also mentioned to members recently that we weren’t likely to see a retracement from the DXY or EURUSD, and so far, that’s been the case.
My next target for the DXY is 99.30, putting the EURUSD close to the 1.1300 resistance area.
Above that, we have the early 2022 EURUSD range highs at 1.1480.
The DXY would likely need to test the 98.00 support region for the euro to reach the 1.1480 handle in the coming weeks.
Alternatively, a 101.00 reclaim from the DXY would be bullish for the USD and signal a top for EURUSD.
But I’ll stay bearish on the dollar while the DXY is below the 101.00 area.
See today’s video (above) for all of the details.