The EURUSD remains indecisive to start the week, but in today’s video, I share my thoughts on what to look for and how to trade the euro this week.
We’ll discuss a must-watch trend line and key levels and targets, depending on what we get later this week.
I also provide an update on the US Dollar Index (DXY).
Watch the video below and scroll down for the annotated charts and analysis.
The EURUSD is once again testing a trend line that could determine the currency pair’s direction in the coming weeks.
I mentioned the October trend line in Saturday’s forecast video.
However, today, I want to share how I plan on trading the EURUSD, including targets to watch.
The first thing I want to note is that any intraday price action around the 1.0880 region is of little significance.
We’ve seen EURUSD trading in this range for the last few days, so the higher time frame closes are what matter.
That’s the case for anyone who wants to improve their trading.
We saw EURUSD close last week just above the 1.0880 confluence of support, so there’s still the chance we see a 1.1000 retest.
Naturally, that means the DXY would likely need to retest 102.60 as support, given that the EURUSD and DXY are inversely correlated.
That’s certainly possible, but the dollar index would need to break below 103.10 first for a larger USD correction to materialize.
Similarly, EURUSD needs to hold above 1.0880 on the daily time frame to have any chance of reaching 1.1000 resistance.
If it can’t and we see the euro below the 1.0880 mark on the daily time frame, then a retest of 1.0755 and even 1.0650 could be in store.
Regardless of whether we see 1.1000 in the coming days or not, I remain cautiously bearish on the EURUSD while below its 2024 open.
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