#EURUSD - 19092024
Yesterday, I was somewhat bullish DXY, saying that DXY should see further upside, and thus EURUSD could come down first, with DXY hitting 101.2 level before it pullback (and EURUSD to go up). But instead, market just range before FOMC, with the OP holding the lows and with FOMC rate cut, EURUSD rallied initially (not surprising) but market reacted differently and we got the sell in EURUSD and further selling now that Asia is open.
The point I am trying to make though is that, the DXY candle on Tuesday seem to indicate further upside but market was reacting differently throughout the day, but in the end it got a pin bar candle on daily and further upside for DXY. Thus, the daily candle does give clues.
Anyway given the huge down move currently, what is next for EURUSD? If we had based off the daily candle on close, I would have been bearish (especially with the bullish DXY daily candle) but now that the down move has happened (and missed), it would be tricky to know the next move, whether market will pull back from here or continue further down. And overall, EURUSD is not bearish on weekly basis.
But IMO, for now, based on current move, I would be cautiously bearish to catch the possible next move down on a pullback. And if I could have a reference, it would for DXY to go to 101.8, and for EURUSD itself, a possible move down to 1.1016.
The point I am trying to make though is that, the DXY candle on Tuesday seem to indicate further upside but market was reacting differently throughout the day, but in the end it got a pin bar candle on daily and further upside for DXY. Thus, the daily candle does give clues.
Anyway given the huge down move currently, what is next for EURUSD? If we had based off the daily candle on close, I would have been bearish (especially with the bullish DXY daily candle) but now that the down move has happened (and missed), it would be tricky to know the next move, whether market will pull back from here or continue further down. And overall, EURUSD is not bearish on weekly basis.
But IMO, for now, based on current move, I would be cautiously bearish to catch the possible next move down on a pullback. And if I could have a reference, it would for DXY to go to 101.8, and for EURUSD itself, a possible move down to 1.1016.
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