I’ve written about the US Dollar Index (DXY) 102.50/60 area a few times this month.

It’s a key horizontal, the golden pocket, and the bottom of a short-term descending channel.

We saw the DXY defend 102.50 last week with a bullish pin bar on Thursday.

Bulls followed through on Friday, but the dollar bull case has faltered a bit since then.

The Australian dollar has been a tough market to read this month.

That’s been true for several currency pairs and even stocks.

However, I think that’s about to change.

While pairs like AUDUSD are still sideways this month, the chart suggests a potential breakdown in the days ahead.

It’s no secret that I’m bearish on EURUSD.

Most of my recent commentary has been tilted toward looking for short entries.

I also have a EURUSD short position from last week at 1.0852, as shared in the member’s area.

Many will disagree with my outlook, and that’s okay.

Today, I wanted to take a step back and show you one reason I’m sticking with my bearish euro outlook.

Today’s weekly forex forecast covers the DXY, EURUSD, GBPUSD, USDCAD, and EURJPY.

The US Dollar Index (DXY) carved out a massive bullish reclaim last week, while the EURUSD approaches channel support from October.

We also have a potential 900-pip opportunity on USDCAD this year and a EURJPY reversal pattern worth your attention.

Get the details on that and more in today’s forex forecast.

I’ve discussed USDCAD a lot in recent months.

First, we caught the bounce from 1.3300 support in early February.

Then came the breakout from the October trend line on February 22nd, something we discussed at length in the Discord group.

There was even a smaller consolidation pattern that developed in early March that triggered an aggressive move toward 1.3880.

The US Dollar Index (DXY) fell below a critical support level following Wednesday’s FOMC.

I’ve written about the 102.60 area several times this month, noting how it’s a key horizontal, the golden pocket, and channel support.

The dollar index closed Wednesday’s session at 102.53, marginally below the key level.

However, FOMC-driven moves are prone to failing later in the week.

The EURUSD is testing a key resistance area at 1.1800.

I mentioned this area in last weekend’s forecast video.

As you can see, the 1.1800 area involves a trend line from the recent consolidation lows.

It’s the area buyers need to break to reestablish the bullish momentum.