EURUSD is breaking down from the 2022 trend line this week, a level I’ve discussed several times on this website.
I’ve also mentioned looking for EURUSD shorts since the fakeout in July.
This is a theme I’ve repeated to Daily Price Action members for weeks.
As long as the pair is below the 1.0970 resistance area on the higher time frames, I favor looking for shorts toward 1.0840 and 1.0730.
Of course, the EURUSD outlook hinges on the US Dollar Index (DXY).
We’re seeing the DXY break the 102.80 confluence of resistance this week, an idea I’ve favored since the index reclaimed 100.80 in July.
I favor dollar longs while the DXY is above that 102.80 region on a daily closing basis.
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