EURUSD → Attempting a trend change. It could be successful

6 Nov 2023

EURUSD breaks local correction resistance which could be a confirmation of a trend change amid dollar weakness due to weak policies



On the senior timeframe we can clearly see the inverse correlation, when checking the support in DXY the currency pair forms a breakout of resistance and heads towards the 200-day moving line. This line will be tested and broken in the near future, as there are prerequisites for a bullish trend change in the market. The potential target in this case is the resistance at 1.0945.

On the local timeframe we see a breakout of the local channel resistance. The nearest important level 1.0759 separates us from the official bullish trend. I expect a breakout of this level and further growth. The SMAs on H1 formed a golden cross earlier, and the news background of EURUSD is bullish, therefore, we should expect a bullish trend and growth in the medium term.

Support levels: 1.069, previously broken channel resistance
Resistance levels: 1.0759

I expect a retest of 1.0759, a small correction and subsequent break of resistance with further growth to the above targets

Regards R. Linda!