Did the EURUSD just liquidate early shorts only to resume its bearish ways?
I’ll have all the details in today’s video, along with what the US Dollar Index (DXY) needs to do to stay bullish next week.
Get all of that and more in today’s video!
[embedyt] https://www.youtube.com/watch?v=R6K8lAfzJH8[/embedyt]In Thursday’s video, I discussed the potential of this week’s EURUSD rally being nothing more than a liquidity sweep before more downside.
Today’s US jobs numbers make that outcome more likely, but dollar bulls still have work to do.
The US dollar rocketed higher following today’s non-farm payroll print of 303k jobs added against a 212k forecast.
Even the unemployment rate, which has slowly edged higher in recent reports, ticked lower to 3.8% against a 3.9% consensus.
All in all, today’s jobs numbers are dollar bullish.
However, the DXY needs to reclaim 104.45 today to stay constructive next week.
If the dollar index closes below that mark, we could see the DXY sweep this week’s low toward the 103.60-103.80 region next week.
And if the DXY closes the day above 104.45, then it flips back to support with 105.00 coming in as resistance.
As for the EURUSD, it all comes down to today’s weekly close in relation to 1.0790.
A daily and weekly close below that level keeps the bearish idea alive, while a close above keeps EURUSD range-bound between 1.0800 support and 1.0865 resistance.
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