- EUR/USD heading even lower as the bears are not done yet.
- The US dollar, DXY, however, is reaching into weekly resistance, so a correction could be in order.
As per the prior analysis from the New York session, EUR/USD Price Analysis: Bears are on the prowl but bulls are firming up, the bears are indeed on the prowl and taking on the bulls at what would be expected to be a daily support area.
EUR/USD prior analysis
The price was stalling at the start of the daily supporting area and it was feasible to expect a correction. However…
EUR/USD live market
The bulls are giving way to the bears in Asia Friday as the US dollar firms to the highest level in its bullish cycle so far. The 100 mark is just a stone’s throw away as measured by the DXY index and this is weighing on the euro.
DXY weekly chart
The dollar has carved out a weekly W-formation and the price is reaching weekly resistance. This is bearish, but of course, the price can still go higher. However, if it does start to stall, there will be a reasonable case for the downside and that could elevate pressure on the euro in the coming days/ weeks.