Today I’m going to show you exactly how I’m trading EURUSD this week.
I’ll discuss this week’s events that will affect the pair, and I’ll also share the latest on the US Dollar Index (DXY).
Watch the video below and scroll down for the annotated charts and analysis.
The EURUSD bounced from the 1.0635 May low late last week, and we’re seeing buyers continue to push the euro higher on Monday.
However, navigating this week’s volatility will be tricky.
We have several critical events coming up, including Wednesday’s Fed rate decision and statement, and several PMI numbers out of Europe on Friday.
But as you may know, I only focus on the technicals.
I’m aware of events like FOMC and PMI and the volatility they can produce, but I rely solely on technical analysis to make trading decisions.
When we look at the EURUSD technicals, the 1.0690 level is still resistance on a daily closing basis.
That’s the daily closing prices from late May and early June, and the September 7th low.
A daily close above 1.0690 this week could trigger a rally back to 1.0770, while sustained daily close below 1.0690 will keep the level intact as resistance.
Remember that this week’s events will affect EURUSD, so trade with caution.
I’m in favor of eventually looking for shorts again, but perhaps not before a relief rally from the euro.
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