Today I’m going to show you what could be next for EURUSD following Tuesday’s reversal from the 1.0960 area I mentioned on Monday.
I’ll also provide an update on the US Dollar Index (DXY).
Watch the video below and scroll down for the annotated charts and analysis.
EURUSD is reversing today from 1.0965, just five pips above the 1.0960 level I mentioned in yesterday’s video.
There was a confluence of Fibonacci levels there, and buy-side liquidity from the late August highs.
If Tuesday’s session can close below 1.0930, it should confirm a local top for EURUSD.
Of course, there are no guarantees, and there are still several hours left in today’s session.
The odds of a 1.0844 sweep would increase if sellers can secure a sub 1.0930 close today.
As mentioned in yesterday’s video, there’s a sell-side inefficiency from last week’s breakout near 1.0800.
So a bearish reversal this week would first target 1.0880, followed by the 1.0844 level that held as support last week.
However, the resting liquidity from last week’s price action suggests a possible move toward 1.0760 to rebalance the liquidity profile following the November 14th breakout.
Alternatively, a sustained break back above 1.0930 would be bullish toward 1.1040.
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