EURUSD has been stuck in sideways action lately after an aggressive start to April. But with May just around the corner, traders should stay on their toes.
In today’s video, I’ll break down the key EURUSD levels to watch, and explain why the start of a new month could bring some much-needed setups.
To say the markets have been indecisive in the second half of April would be an understatement.
After an aggressive first week, pairs like EURUSD have been mostly sideways.
That brings us to the big question: Will the euro pull back into demand, or keep climbing and extend the 2025 rally?
Nobody knows for sure, but staying true to your trading style is key.
Personally, I can’t justify longing EURUSD at these levels—especially after last week’s candle.
There’s also a significant sell-side imbalance near 1.1200 that’s begging for a retest. Whether or not we see that happen is still up in the air.
Remember, new months often bring retracements after strong moves. With May just one trading day away, there’s a good chance we could see a pullback into value early next month. That makes the EURUSD 1.1200 region one to watch closely.
As for the DXY, buyers are facing resistance at levels like 100.20 and even 99.30, which the USD index dropped below on Monday.
On the flip side, the DXY is showing a buy-side imbalance at 101.80. But unless we get a high time frame reclaim of 100.20, there’s no reason to get bullish on the DXY heading into May.
In summary, forex market conditions remain tricky. However, I’ll be keeping an eye on retracements into key areas of interest as May kicks off.
