Today I’m going to show you exactly how I’m trading EURUSD.
I’ll discuss a massive test for euro bulls at 1.1000, including targets if we get a breakout.
I’ll also share what would set up a EURUSD short from 1.1000 and the targets in case of a bearish rejection.
Check out the EURUSD video below and scroll down for the annotated charts and analysis.
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The EURUSD and US Dollar Index (DXY) face critical tests this week.
For the euro, it’s all about the 1.1000 confluence of resistance, which I discuss at length in the video above.
A breakout from that resistance area would expose higher levels like 1.1080 and 1.1190.
However, the last thing you want to do is get bullish at resistance.
It will take a sustained break above the 1.1000 region to confirm the bullish breakout for EURUSD.
Until then, the area is key resistance.
As for the DXY, the 102.00 area is critical support for the dollar, as it’s the intersection of the trend line from 2021 and a recent horizontal pivot.
A sustained break below DXY 102.00 opens up the 100.80 year-to-date lows and potentially lower.
But just like with the EURUSD, you don’t want to short the dollar into key support.
It’s important to understand that both markets are range bound until proven otherwise.
See the video above for all of the details.
