EURUSD lands on the new year uptrend support line
The 1.0750/60 level puts us right on the Jan uptrend and we're testing that now.
EURUSD H1 chart
If we break here and hold the next support level the decision will be do we get back above the line or find resistance there?
It's a bit tough finding out which tail is wagging which dog today. When the euro started slipping it wasn't due to the dollar going higher, nor the pound. It's just been a bout of euro weakness that's now being aided by a bit of dollar strength. Looking at bonds, they're not the reason for the US strength either. However, DXY watchers will be noting that it's rising again. Oil is also higher but the CAD isn't following. It's all a bit strange really.
Still, at the end of the day, we're not breaking any new ground, the euro has sat in a 70 pip range all week and now that's been extended, as is natural. Getting back above 1.0700 will relieve some of this bearish pressure, and if we don't then further downside is possible.
