The EURUSD is approaching a massive confluence of support that dates back to the early 2000s.
That area starts at 1.109 and extends down to 1.103. It’s the intersection of ascending channel support from the early 2000s and the descending trend line from the 2008 highs.
However, as of now, we have no way of knowing whether or not this support region will hold. It looks convincing from the monthly time frame above, but it’s lacking confirmation.
This is when price action is useful. Until I see some form of bullish action from support or a daily close above 1.148, trying to buy the EURUSD is risky, in my opinion.
That 1.148 area, by the way, is what buyers need to take out for the EURUSD to extend higher, perhaps back to the 1.170 region.
But for now, all eyes are on the 1.109-1.103 support zone.
I’m seeing a few cracks forming in the DXY (US dollar index), but nothing confirmed just yet. The USD remains in an established uptrend just as the EURUSD is in a downtrend.
That said, I like the odds of a reversal from both should certain criteria be met as explained above.