Today I’m going to share a must-watch level on the US Dollar Index (DXY) that could offer significant clues for EURUSD this month.
I’ll discuss key levels and targets if dollar bulls can follow through.
Watch the video below and scroll down for the annotated charts and analysis.
The EURUSD has been a difficult currency pair to read over the last few weeks.
One reason for that is the pair’s indecision at the 1.0930 key level from August.
We’ve seen the euro fail to hold that level as new support twice since late November, with the most recent occurrence being just last week.
This is one of those times where paying attention to the DXY can payoff, quite literally.
The DXY key levels are easier to read than those on the EURUSD, especially 102.60.
That’s the level dollar bulls need to reclaim to force a bear trap and send the DXY toward 103.00, and potentially back to the 103.50 yearly open.
That would, of course, put pressure on the euro and send EURUSD back to its October trend line.
If the DXY can’t reclaim 102.60, then we could see another run at 102.00 support and possibly the 101.00 range lows from earlier this year.
For now, the euro’s immediate direction is unclear, but the DXY 102.60 level is one to watch this week.
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