Today we are dipping into the currency markets where we are plotting the 
EURUSD and the 
DXY index in the same chart. Even if the DXY is making a local top @ 108 but the EURUSD is not breaking below the 0.236 Fib retrenchment level. EURUSD has shown great resilience every step of the way recently. This might indicate a local bottom on $EURUSD. If EURUSD bounces back from the 0.236 fib retracement level watch out for the next 0.382 Fib level when the EURUSD hits 1.062. The DXY is failing to make a new top on the weekly chart. So, with USM2 increasing and the supply of USD increasing in the market there might be some weakness in USD in the weeks to come. And if DXY tops out here and fails then EURUSD will show some bullish trends because 60% of the DXY index is still in EUR.
EURUSD and the DXY index in the same chart. Even if the DXY is making a local top @ 108 but the EURUSD is not breaking below the 0.236 Fib retrenchment level. EURUSD has shown great resilience every step of the way recently. This might indicate a local bottom on $EURUSD. If EURUSD bounces back from the 0.236 fib retracement level watch out for the next 0.382 Fib level when the EURUSD hits 1.062. The DXY is failing to make a new top on the weekly chart. So, with USM2 increasing and the supply of USD increasing in the market there might be some weakness in USD in the weeks to come. And if DXY tops out here and fails then EURUSD will show some bullish trends because 60% of the DXY index is still in EUR.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.