Is EURUSD setting up for a reversal, or will 1.0533 resistance finally break?
Find out in today’s video, where I share my latest trade and the latest on the US Dollar Index (DXY).
EURUSD bounced from a confluence of support on Monday at 1.0457, but bulls are struggling again on Tuesday.
Although the pair remains sideways, there are some clear levels traders can watch for a breakout.
Resistance is at 1.0533, while support comes in at 1.0457.
The DXY is still holding below the 107.00 resistance area, which has supported euro bulls.
However, I’ve mentioned the potential for a US dollar short squeeze in recent videos, and that risk remains.
While the DXY hasn’t made a significant move yet, the February correction appears to be losing steam.
For EURUSD bears to gain control, they need a daily close below the February trend line at 1.0480 and the 1.0457 horizontal level.
On the other hand, a sustained break above 1.0533 would open the door to 1.0615.
EURUSD remains indecisive this week, but traders should note that the euro is trading just below key resistance within a 300-pip range.
There’s little reason to get bullish while that remains the case, but the bearish setup only comes into play below 1.0457.
