Today I’m going to show you exactly how I’m trading EURUSD next week, including a potential early-week move to sweep liquidity.
I’ll also provide an update on the US Dollar Index, the DXY.
Watch the video below and scroll down for the annotated charts and analysis.
EURUSD caught a bid on Friday from the channel support I’ve discussed recently.
That level came in at 1.0555 during Friday’s session.
However, the DXY remained strong going into the weekend despite an initial dip.
Ultimately, I think we see the dollar index continue higher through the rest of 2023.
That doesn’t mean we can’t or won’t see pullbacks, but my longer term target for the DXY remains 109-110.
As for next week, I’m anticipating a slight pullback from the DXY to sweep some of the liquidity left behind from the October 24th candle.
The inverse goes for EURUSD, which may see 1.0630 early next week before another rotation lower.
But keep an eye on the EURUSD channel below, as it will likely continue to play a pivotal role in the euro’s direction next week.
A sustained break below channel support is needed to expose lower levels like 1.0448.
Alternatively, a sustained break above 1.0635 would be bullish for EURUSD.
Get Lifetime Access to Our Trading Group for daily analysis videos, see Justin Bennett’s trades in real-time, receive exclusive trade setups throughout the day, and access over 1,000 other forex and crypto traders. Last chance to join at a ridiculously low price. Offer ends October 31st!