Bearish Continuation on EURUSD Towards 1.0700

EURUSD has recently encountered resistance at two critical supply levels – the previous monthly low and the low from two weeks prior.

This rejection suggests a bearish sentiment, setting the stage for a potential bearish continuation. Our analysis, based on our framework, indicates selling opportunities in the EURUSD pair.

Technical Analysis:
The rejection at key levels and the subsequent failure to breach resistance points toward a potential bearish movement in EURUSD. The recent price action aligns with our 1-2-3 price action framework, signaling a selling opportunity.

Discounted DXY Levels:
The US Dollar Index (DXY) has experienced a pullback to a key level, providing a favorable discount area to plan the EURUSD trade. This alignment with DXY's movement enhances the bearish case for EURUSD.

DXY Target and EURUSD Projection:
Our previous DXY update highlighted a bullish stance, reaching a 1:1 target before pulling back to a key level. If DXY holds these levels, we anticipate a continuation towards its target. This scenario could drive EURUSD lower, aiming for the 1.07300-1.0700 range.

Trade Plan:
Monitoring the market dynamics, we are prepared to initiate a bearish continuation trade on EURUSD if the conditions align. As always, our approach remains adaptable, and we will let the market guide our decision-making process.

Trade closed manually:

EURUSD Dropped to 1.07400 level before rejecting. Position has been closed manually. My trade session is nearly over so There's no reason to try to hold this position over the weekend. I was able to secure a solid 1:1 on my market execution order and 1:4 on the 2nd position (pending order).

We Will come back next week to see if the market offers more opportunities.