Today I’m going to show you exactly how I’m trading the EURUSD.
The euro is attempting an early-week breakout, so I’ll share the trigger for a potential long opportunity.
I’ll also discuss targets and invalidation levels to watch.
Check out the EURUSD video below and scroll down for the annotated charts and analysis.
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We’re seeing EURUSD bulls attempt a breakout on Monday as the US Dollar Index (DXY) comes off the 103.50 confluence of resistance.
I discussed DXY 103.50 resistance several times last week.
The dollar index reached 103.54 on Friday before reversing aggressively into the weekend.
Given the range-bound price action we’ve seen from the dollar recently, I’m only interested in trading the range.
As mentioned in the Weekly Forex Forecast, this isn’t the time for big bets and 500+ pip targets.
It’s a time for small bets and booking profit early and often.
With that in mind, the EURUSD has to clear the 1.0920 resistance area to trigger a long setup.
Notice how there are two valid hourly trend lines below.
So far, euro bulls have only cleared the first one, so a sustained break above the second trend line near 1.0920 is needed to secure the long opportunity.
A sustained break above this 1.0920 area would expose the 1.0965-1.1000 range highs.
Alternatively, a fakeout from 1.0920 could offer a short opportunity toward the 1.0820-1.0840 range lows.
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