The EURUSD is up today after a softer-than-expected US Consumer Price Index (CPI).
But the big question remains: Can bulls confirm a local bottom, or will it be another failed attempt for the euro?
In today’s video, I cover the latest on EURUSD and provide insights into the US Dollar Index (DXY).
The EURUSD is once again testing the 1.0350 resistance level following a softer-than-expected US CPI.
The DXY is also retesting its September trend line near 108.50.
Whether these levels hold through January remains uncertain.
In yesterday’s VIP-only video, I mentioned that the “easy” trades might be behind us, at least for now.
Back in October, US dollar longs were the obvious play when the DXY reclaimed 102.60—a key level I highlighted several times.
The same applied when the DXY broke above its October trend line at 105.50.
Those scenarios offered relatively straightforward USD long setups, with clear targets between 109.00 and 110.00, which I had been discussing for months.
That said, the US dollar hasn’t confirmed a top yet. Until proven otherwise, the trend remains intact.
As long as the DXY holds above 108.50, the top of the 2023 channel near 110.50 remains a potential target.
If the DXY loses support at 108.50 and 108.00, it could signal a local top for the US dollar.
For the EURUSD, levels like 1.0350 and 1.0460 act as key resistance.
As long as the euro stays below these levels on the weekly time frame, I see no reason to adopt a bullish outlook.
However, like everything in trading, the situation is fluid.
I’m open to shifting my bias, but only if the charts justify it.
For now, I’ll continue to focus on EURUSD shorts from resistance, targeting levels like 1.0090 and potentially parity.