The EURUSD is at a crossroads after closing last week above a key threshold. However, sellers are stumbling on Monday, and these levels hold the key to lower prices.
Watch today’s video for the latest on EURUSD, including key levels to watch and a step-by-step plan for how I plan to trade it this week.
Markets are digesting the reopening of the US government. The news arrived just as the forex market opened on Monday, resulting in choppy price action so far this week.
In my weekly forecast, I mentioned how last week closed above the 1.1540 region. That has been a key pivot for EURUSD since October.
However, the euro appears relatively weak so far on Monday.
One massive advantage to being in our VIP Discord group is that I provide real-time updates to members. So far on Monday, I’ve already shared multiple chart updates and setups, including one that presents a bearish view for EURUSD.
The EURUSD has broken an intraday trend line support near 1.1560. The next big tests for sellers include 1.1540 and the November open at 1.1528.
Remember that the euro closed above its November open last week, so buyers are likely to defend 1.1528 if tested as new support.
The same applies to the US Dollar Index, also known as the DXY. It closed below its November open at 99.75 last week, so that region will serve as resistance this week.
A sustained break below 1.1540 and 1.1528 from the EURUSD and DXY above 99.75 on the high time frames would suggest a bearish euro this week.
That would open the door to the 1.1483 confluence of support I had been watching last week.
It could also pave the way for a move toward the 1.1440 single print from August.
Alternatively, a high time frame close above 1.1540 and 1.1555 keeps the neutral to bullish bias intact.
As shared with VIP members this morning, I’m in no rush to act, especially after catching a profitable BTC long over the weekend. I will update Discord members if that changes, including any trades I take here, with entry, stop-loss, and take-profit levels.
