The euro is once again bouncing from its February trend line support. Can buyers keep it going, or will they falter at 1.1830?
Get the details in today’s video. Plus, get the latest on the DXY as the dollar struggles at 97.70.
EURUSD closed last week at its February trend line support. The level comes in near 1.1730, which I discussed in the Weekly Forex Forecast.
With the euro closing Friday above that mark, it’s no surprise to see the pair bouncing on Monday.
The key for the EURUSD is what we get later this week.
If buyers can secure a break above 1.1830 this week, we could see 1.1900 resistance again.
On the other hand, a sustained break below the February trend line would open up 1.1580.
Because it’s an ascending level, the February trend line is closer to 1.1750 this week.
For now, it’s best to treat EURUSD as a range-bound market. There’s no sense in getting bearish at trend line support.
At the same time, getting bullish on EURUSD while below 1.1830 is risky.
As for the DXY, we knew 97.70 would be a significant resistance level. I discussed it several times last week.
Buyers failed to close the US dollar above 97.70 on Friday, which keeps the DXY range-bound this week.
Key resistance for the DXY is 97.70, with support at the 2011 channel bottom near 96.80.
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