The EURUSD chart signals the bottom might not be in just yet, but what target should you be watching for in October?
Check out today’s video for the answer and an update on the US Dollar Index (DXY).
EURUSD continues to slide toward the early August low at 1.0800.
This is a level I mentioned recently and one that could align with the DXY testing the 104.00 region.
Switching to a bearish view on the euro and bullish on the US dollar was pretty straightforward after the DXY reclaimed 102.60 on October 9th.
That move pushed the USD index back inside its 2023 channel and above a key horizontal level from August 2023.
This week, the DXY is running into some resistance from August at 103.30.
But dollar bulls are quickly clearing that today, and EURUSD is trading well below the 1.0900 resistance as of now.
Given all of this, I remain bearish on EURUSD toward 1.0800 and bullish on DXY toward the 104.00-104.50 lows from earlier this year.
As I mentioned a few days ago, keep an eye on the EURUSD trend line from October of last year, as that could become a target, too.
It’s just below the 1.0800 low and has three touches since it started last year, making it one to watch closely.
