EURUSD is up today on higher-than-forecast US unemployment, but is this the start of the next leg up or a bull trap?
Today’s video discusses the key EURUSD levels to watch, and what could trigger the next big move, plus the latest on the US Dollar Index (DXY).
Let’s get to it!
The EURUSD bounced from key support today in the 1.0730 region on higher-than-forecast US unemployment claims.
However, it’s unclear if this is the start of a new leg up or simply the euro moving to “fill in” the May 7th imbalance.
In my opinion, it’s likely the latter.
I’m still bullish on the US dollar overall, as I have been since the start of the year.
Furthermore, longing EURUSD here is unfavorable considering the confluence of resistance at 1.0800.
If the EURUSD can break above 1.0800 on the daily time frame, then 1.0865 could be next.
But euro longs have the same hurdle as last week with the DXY trading just above the 105.00 key support level.
So far, that area is holding as support on the daily and weekly charts.
That could change, but I wouldn’t want to be shorting the US dollar into the 105.00 handle.
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