EURUSD Target Reached; What’s Next?

by Justin Bennett  · 

July 28, 2023

by Justin Bennett  · 

July 28, 2023

by Justin Bennett  · 

July 28, 2023

Today I’m going to show you why the EURUSD hit our target this week, and where I think the pair is going next week.

Plus, I’ll share an update on the USD index and give my thoughts on what’s to come in August.

Watch the EURUSD video below and scroll down for the annotated charts and analysis.

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EURUSD hit my 1.0950 target this week, the confluence of support based on two trend lines from May.

I discussed the idea of a move to 1.0950 in Saturday’s Weekly Forex Forecast.

The confirmed fakeout from EURUSD above 1.1170 was the technical catalyst for this week’s selloff from the euro.

We also had the US Dollar Index (DXY) close back above 100.80 last week, trigger dollar strength this week.

I also discussed the DXY close above 100.80 last weekend.

So now that the EURUSD has reached my target, what are we likely to see next week?

While there are never guarantees when trading, I do think that a break below the 1.0950 region seems likely, given the fakeout above 1.1170.

Fakeouts at significant levels often trigger extended moves in the opposite direction, which is what I’m focused on here.

We also have the DXY reclaiming the 101.25 level this week, an additional technical catalyst for USD strength next week.

Key resistance for EURUSD comes in between 1.1070 and 1.1100 with 1.0950 serving as support.

A sustained break below the descending May trend line at 1.0950 would open up the 2022 channel support near 1.0730.

All of the above is, of course, just my opinion and does not constitute financial advice of any kind.

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