EURUSD remains locked in a 90-pip range that began with the May 24th selloff.
Since then, buyers have defended 1.0670, and sellers have protected 1.0760.
The EURUSD is trading at its range highs, so we’ll see if this range continues or if we get a breakout.
In such conditions, looking for the breakout trade is human nature.
Everyone wants to nail the next big move.
However, a range is a range until it isn’t.
That may seem obvious, but it will help keep you on the right side of the market.
As traders, we must trade what’s on the chart rather than what we want to happen.
And currently, EURUSD is still holding within this 90-pip range on the higher time frames (4-hour chart and higher).
Unsurprisingly, the US Dollar Index (DXY) is also testing the 103.50 yearly open.
The dollar reclaimed the yearly open on May 24th, closing a weekly and monthly candle above the level.
Dollar bulls have work to do with the DXY looking relatively weak today and trading below 103.50 intraday.
That said, it will take a daily close below 103.50 to flip it to resistance and expose lower levels.
If 103.50 fails today, keep an eye on 103.00 and 102.00.
And if today’s session closes back above 103.50, then the yearly open remains intact as support on a daily closing basis.
As for EURUSD, the next move hinges on where today’s session closes in relation to 1.0760.
A daily close above flips the level to new support and exposes 1.0830.
Alternatively, a close below 1.0760 keeps it intact as resistance and also keeps the EURUSD range bound.
We should have an answer in the next five hours.
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