EURUSD starts the week in the red as anticipated, but the US dollar faces a significant test this week.
Read today’s Post for the details, including key levels and scenarios to watch for EURUSD and the DXY.
The EURUSD is following through on the outlook I provided at the start of the month.
Despite a bullish close to the June candle, the pair was testing its May channel resistance and looking stretched to start July.
Furthermore, the DXY looked constructive to start this month after failing at 97.70 in June.
A retest of the 97.70 region as new resistance this month seemed likely, which is quickly becoming a reality.
That said, the euro is catching a bid today at 1.1685. The US Dollar Index is also approaching the confluence of resistance at 97.70. To say this is a significant moment for markets is an understatement.
If the DXY reclaims 97.70 on the high time frames, it will confirm a monumental buy signal. However, it’s imperative to respect the chart, which currently shows 97.70 as resistance for the DXY.
I booked a partial profit on my EURUSD short today, given the current trading levels of the euro and DXY. This trade was shared with VIP members in real-time last week.
EURUSD key support levels are 1.1685 and 1.1630. The DXY will likely encounter significant selling pressure in the 97.70 region.
Lastly, don’t get too comfortable with a specific trade plan. All scenarios should be considered equally, given the potential for rapid changes in current conditions.