US dollar shorts are getting squeezed today, pushing pairs like EURUSD and GBPUSD lower.
Watch today’s video to see the opportunities I’m tracking as we head into March.
EURUSD Outlook
I’ve mentioned the potential for a US dollar short squeeze since late last week, and it’s starting to play out during Thursday’s session.
EURUSD broke down from the February trend line discussed in Wednesday’s video, which was my ideal scenario heading into March.
The euro retested the level as new resistance early in Thursday’s session at 1.0490 before selling off over 80 pips.
I took a short position on the retest, an entry I shared with VIP members in real time.
Traders should expect buyers to defend the EURUSD mid-range near 1.0380, but a return to the 1.0200 range lows is still possible.
That’s especially true if the DXY reclaims the 107.10/20 region this week.
I entered short EURUSD at 1.0484 on Thursday, as shared with VIP members in real time.
GBPUSD Outlook
GBPUSD has climbed steadily since mid-September, but the corrective nature of the move hinted at a bearish reversal this week.
I told VIP members in Discord on Wednesday that the price action looked corrective and to watch for a potential breakdown to close out the month.
That breakdown is unfolding on Thursday, with a sustained break below 1.2630 opening the door to 1.2500 support.
This will be a key moment for both the pound and the US dollar.
If 1.2500 is tested in the coming days, it will act as a confluence of support, aligning with the January ascending trend line.
Expect buyers to defend the 1.2500 region aggressively, but if it fails to hold in March, GBPUSD could be in trouble.
An even stronger level to watch is 1.2650, the trend line resistance stretching from late 2022 into early 2023.
