Is the EURUSD preparing for a move lower, and why is the DXY’s reclaim of 102.60 such a key factor?
Watch today’s video for the full breakdown.
It looks like the EURUSD is setting up for some interesting moves after breaking below the July ascending channel.
The breakdown technically happened last week, but we’re now seeing a strong follow-through.
The bigger story here is what’s happening with the US Dollar Index (DXY).
For weeks, I’ve been talking about a possible 102.60 retest, which we saw last Friday.
Even though the DXY hit that key level, I mentioned in the last forecast that shorting the USD didn’t seem like the best move, given how strong last week’s rally was.
Fast forward to this week, and now the DXY is reclaiming 102.60 on the daily time frame.
We’ve only had one daily close above this level, but today looks like we’ll get a second.
If USD bulls can hold onto 102.60 on the daily chart, it could confirm a move up to areas like 104.00.
That could mean EURUSD dropping to levels like 1.0780.
However, this idea becomes invalid if the euro closes back above 1.1000 and the DXY falls below 102.60.
