EURUSD is bouncing from critical support, but 1.1080 is the next significant test for buyers.
Get all the details and see exactly how I’m trading it in today’s video.
EURUSD is up 1.2% today after testing the multi-decade support I’ve discussed since last week.
The level is the bottom of an ascending channel that extends from the 2000 lows.
This pattern has directed the EURUSD price action for the last two decades, so it’s incredibly significant.
With the euro up 1.7% from this week’s low, it’s time to turn our attention to the next hurdle for buyers.
If you saw my recent posts, including the weekly forecast, you know that the 2008 trend line is the level to break.
As of now, that level comes in at 1.1080. You can see how it served as support since November. That is until EURUSD closed below it on March 3rd.
The pair has to get back above this level on a daily closing basis to flip bullish again and open the door to 1.1480.
Until then, 1.1080 is a critical resistance level.
Lastly, the EURUSD testing the 2008 level near 1.1080 likely coincides with the DXY (US dollar index) reaching channel support at 98.
This makes sense as we know the EURUSD and DXY tend to move inversely to one another.
I’ve mentioned it recently, but I think the highest conviction EURUSD long will materialize following a daily close above the 1.1080 region.
That would confirm that the recent move below the 2008 trend line is a false break and re-expose the early 2022 highs at 1.1480.
Alternatively, a close below the current March low would be bearish and open the door to 1.065.
As always, none of the above is financial advice as it’s just my opinion.