Tuesday’s US Consumer Price Index (CPI) numbers promise to bring volatility for pairs like EURUSD, but what exactly should you watch for?
That’s what I’m breaking down in today’s video. Plus, get the latest on the US Dollar Index (DXY).
Let’s get started!
The EURUSD is pulling back today after closing above the 1.0900 key area last week.
That means 1.0900 should flip to new support.
However, another structure has developed on the pair since mid-February that could change things this week.
Since the February low at 1.0695, the EURUSD has carved an ascending channel.
Friday’s session tested the top of this channel, which is why I mentioned on Sunday that EURUSD would likely sweep Friday’s low.
So far, that’s precisely what we’re seeing.
The big question now is, can the euro hold above 1.0900 this week
If it can, the next key resistance isn’t until 1.1000.
But if bulls fail to defend 1.0900 on a daily closing basis, it would confirm last week’s move as a fakeout and expose levels like 1.0800.
For now, the jury is out on which scenario we get, but be sure to keep an open mind just in case.
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