EURUSD finished last week with a significant breakdown below the September 2022 channel support.
I’ve discussed this channel in videos over the last few weeks.
The US Dollar Index (DXY) also finished last week with a significant move.
Last week was the first higher high from the dollar since early March, marking a potentially significant bullish reversal.
The dollar also closed last week above 102.00, which flips to support this week.
As for EURUSD, the breakdown from the September channel opens up lower levels like 1.0750 and the 1.0500 area.
It’s unclear whether we’ll get a retest of this channel, although I think it’s unlikely as of now.
Instead, I’ll watch how the euro reacts in the 1.0930 region.
That’s a key weekly resistance for EURUSD and an area that could offer an attractive selling opportunity.
In summary, I’m bearish on EURUSD while last week’s breakdown holds, with targets of 1.0750 and 1.0500.
