This week’s EURUSD rally is losing steam as the overall trend remains bearish, with the US dollar gearing up for a potential retest of 110.50.
Watch today’s video to see how I’m trading the euro, including key scenarios to monitor ahead of Friday’s non-farm payroll.
EURUSD has had an eventful start to 2025.
The pair began with a sweep of the 1.0350 lows, testing the 1.0222 key support level—an idea I shared several times at the end of December.
The bounce from 1.0222 pushed EURUSD back above 1.0350, even closing Monday’s session above that level.
However, as I mentioned earlier this week, both EURUSD and GBPUSD were below key weekly levels, keeping my outlook bearish despite Monday’s rally.
After Tuesday’s close below 1.0350, I informed VIP members that both the euro and pound appeared bearish heading into Wednesday’s session.
Today, both currencies are down significantly as the DXY approaches 109.50 resistance.
While EURUSD may range ahead of today’s FOMC minutes and Friday’s non-farm payroll, the pair remains technically bearish.
The only way EURUSD shifts to a bullish outlook on the higher time frames is with a weekly close above 1.0350.
Until then, my targets remain at 1.0090 and parity, with the DXY likely to test the 110.50 channel resistance from 2023.
