The forex market has kicked off 2025 with significant volatility, as EURUSD whipsaws around a critical level.
But is this the bottom for EURUSD, or was Monday’s price action just a liquidity sweep?
Find out in today’s video, where I’ll share how I’m trading the euro and provide the latest insights on the US Dollar Index (DXY).
The forex market has started 2025 with some intense volatility.
EURUSD kicked off the year by breaking below 1.0350, a level I highlighted multiple times in December.
After finding support at 1.0222 on Friday, the euro has climbed back above 1.0350 today.
However, it’s worth noting that EURUSD remains below 1.0350 on a daily and weekly closing basis.
Unless the euro can close above 1.0350 both today and this week, the level still serves as resistance on the higher time frames.
Monday’s US dollar selloff was driven by a Washington Post report suggesting Trump was backing away from his tariffs.
Later, Trump dismissed these claims, causing the DXY to rally sharply from its 108.00 support.
From a technical standpoint, Monday’s price action suggests that today’s moves might just be liquidity sweeps.
Early-year price action is often erratic, and this week’s movement aligns with those expectations.
A daily close below 1.0350 keeps the level intact as resistance and leaves the 1.0200 support area vulnerable.
On the other hand, if euro bulls can reclaim 1.0350 on both the daily and weekly time frames, it could signal a meaningful low for EURUSD.
