Today I’m going to show you exactly how I’m trading EURUSD and whether I think this downtrend will continue or reverse.
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 continues to trade within the descending channel from July.
We saw this level tested last week, which was a confluence of resistance based on the key horizontal from late May.
That 1.0630 area was one I mentioned to VIP members several times at the beginning of October, and was also my target when the euro was trading at 1.0450.
EURUSD tried to break higher on Wednesday, but was ultimately rejected by channel resistance.
The last line of defense for euro bulls is the October trend line near 1.0515.
I don’t have much confidence in that level, though, given today’s EURUSD candle and the way the US Dollar Index (DXY) is pushing higher today.
Ultimately, I think the euro is heading lower from here, potentially to retest the 1.0355 pivot.
That’s been one of my targets for EURUSD since the pair topped out in July.
Alternatively, a sustained break above the 1.0580 channel resistance and a DXY below 105.60 would postpone my bearish bias for the euro.
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