EURUSD is breaking a level today that could open up downside targets this week.
Find out the details in today’s video, and get the latest on the US Dollar Index (DXY) and its breakout from a multi-week pattern.
The US dollar is breaking higher this week, trading above the 101.00 area on an intraday basis.
In the latest Weekly Forex Forecast, I discussed the potential for a DXY falling wedge pattern, which is usually a bullish formation.
We’re already seeing signs of follow-through from US dollar bulls this week.
The EURUSD is also breaking below the key 1.1110 handle I discussed last week.
That’s close to the mid-range of the 200-pip range EURUSD has traded in since late August.
A sustained break below 1.1110 opens up 1.1000.
Given that we’ve yet to see a sweep of the September low, my expectation is for a sweep of 1.1000, possibly heading to the late June trend line at 1.0980.
As for the DXY, a sustained break above 101.00 would target the 101.90 highs.
But like EURUSD, a sweep of those 101.90 highs seems likely, possibly reaching the July 2023 diagonal near 102.60.
