The EURUSD is down 560 pips since October, but the pair could have much lower to go.
Watch today’s video to see how low EURUSD can go in 2024, and get the latest on the US Dollar Index (DXY).
EURUSD has started the week with a significant drop, breaking below the June lows at 1.0670.
This aligns with what I discussed over the weekend, where I noted that the euro could be on its way to sweep the 1.0450 lows later this year.
My 1.0350 target sits 300 pips below the current rate, so EURUSD may have further downside before buyers step in.
It’s a similar, although inverse, situation for the DXY, which could still be aiming for the 109-110 region.
That’s a weekly imbalance I’ve been watching for months and one that might get “filled” later this year.
Structurally, I like the US dollar higher through the end of 2024, followed by a potential pullback in 2025.
For now, my 1.0350 target on EURUSD remains, with key support at 1.0615 and 1.0450.
The 1.0670 area would flip to resistance if EURUSD closes below it today.
