Direct from the desk of Dane Williams.
After EUR/USD bounced off support two weeks ago, price really hasn't looked back.
Heading straight northbound to the next daily zone of resistance where we see price testing today.
EUR/USD Daily:
But remember how we've also been watching the USDX chart inversely track EUR/USD?
As EUR/USD bounces off support, the USDX price bounces off resistance and so forth, both caught in a range?
Well, things really start to get interesting when you bring up a USDX chart and have a look where price is now sitting:
USDX Daily:
That inverse relationship looks to be somewhat broken, you can see the move has mostly been driven by USD weakness rather than Euro strength.
What this hints to, is that EUR/USD resistance price still hasn't bounced away from, might be ready for a juicy breakout higher.
We'll definitely be zooming in and looking to safely trade a break if it does play out this way.
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.