Today I’m going to show you exactly how I’m trading the EURUSD, including another 150 pips of sellside potential.
I’ll also share the latest on the US Dollar Index (DXY) so you can trade the major currency pairs like EURUSD with confidence.
Watch the video below and scroll down for the annotated charts and analysis.
On August 10th, I wrote a post titled “EURUSD: Short Trade Of The Year?”.
At the time, the euro was trading near 1.1030, or 530 pips higher than today’s rate.
So far, it’s been an incredible short opportunity.
We also looked at the 40-year trend line a few times, which the EURUSD tested in July and has since dropped 770 pips.
So is the selloff over or is there more to come?
While nobody knows where markets will go, I don’t think the EURUSD correction is over just yet.
Similarly, the US Dollar Index (DXY) continues to look strong after reclaiming the 105.60 key handle a few days ago.
That said, the dollar is coming up on some resistance near 107.00 and the EURUSD is trading near support today at 1.0500 to 1.0520.
A sustained break below that region would open up a new range for the EURUSD with range support coming in at 1.0355.
Alternatively, a daily close above 1.0520 would keep the level intact as support and the euro range-bound between 1.0520 and 1.0630.
Regardless of the short-term price action, I favor shorting EURUSD on strength with a target of 1.0355.
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