EURUSD closed below a significant level on Friday.
The 1.0700 level is the former range high from December to early January and the October trend line.
That makes 1.0700 a significant area of confluence for the euro.
But the 2023 opening price is what makes the level even more influential.
The EURUSD opened the year at 1.0704 on January 2nd, which makes this a must-watch level for anyone trading the euro.
As noted over the weekend, the pair closed Friday below that mark.
However, as mentioned in Saturday’s Weekly Forex Forecast video, Friday breaks aren’t always the most reliable, given the lower-than-usual volume.
I’m not saying the 1.0700 area won’t hold as resistance this week.
But I am saying that the next 24 to 48 hours should offer clarity. I mentioned something similar in Saturday’s video.
A Monday close below 1.0710 would help confirm the area as key resistance for EURUSD.
Alternatively, a Monday or Tuesday close back above 1.0710 would confirm Friday’s fakeout and likely send EURUSD higher.
Remember that the daily close (using a New York close chart) in relation to 1.0700 is the only thing that matters for the euro right now.