EURUSD is on the edge of confirming a local top, but sellers have more work to do.
Find out what would confirm a EURUSD swing high in today’s video, and learn what the US Dollar Index (DXY) needs to do to push higher in 2024.
EURUSD is starting to confirm the trade idea I shared last week.
At the time, the euro was testing its 2021 descending trend line at 1.0895, a level we’ve discussed for the past few weeks.
However, shorting EURUSD there was a bit risky, as sellers hadn’t taken control.
Even now, the pair is right on the cusp of rolling over, so shorts should proceed with caution.
If EURUSD closes today convincingly below 1.0860, it will start to flip that area to resistance, similar to what occurred at 1.0925 in March.
That would open up support levels like 1.0800 and 1.0725.
But if EURUSD closes at or above 1.0860 today, there isn’t much to do, in my opinion.
A green close today would suggest the euro remains locked between 1.0860 and 1.0885.
As for the DXY, the index cleared 104.52 on Monday, signaling a move to 105.00 resistance while above that mark on a daily closing basis.
That said, 105.00 remains the more significant hurdle for dollar bulls, as a reclaim there would solidify the dollar’s next leg up in 2024.
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