Today I’m going to share my outlook for EURUSD following Friday’s breakout.
I’ll discuss key levels and targets for this week, as well as what will determine the pair’s directional bias in November.
Lastly, I’ll provide an update on the US Dollar Index (DXY).
Watch the video below and scroll down for the annotated charts and analysis.
EURUSD is pulling back slightly today following Friday’s 100+ pip breakout candle.
Last week’s close put the euro firmly above the 1.0690 pivot, and also kept the short-term uptrend alive.
However, a pullback from current levels seems likely.
I told VIP members about it over the weekend, but the US Dollar Index (DXY) ended the week above 105.00 despite breaking 105.60.
So even though the dollar experienced a significant breakdown last week, Friday’s session ending above 105.00 signals a potential retest of 105.60.
That could equal a EURUSD pullback toward 1.0690, potentially even 1.0670.
That’s now a must-hold area for euro bulls as a sustained break below 1.0670 would suggest a fakeout and likely send EURUSD lower.
If the euro can hold above 1.0670-1.0690 over the coming days, it will open up targets like 1.0770 and 1.0840.
But as mentioned above, a sustained break below 1.0670 would be bearish for the euro.
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