(This is not a signal or a trading idea just an analysis)
What Is Next for DXY & Euro?
Looking at the screenshot above we can see that the DXY is in a clear upward movement where higher highs and lows have been posted inside a bullish channel formation. The market recently retraced to the 61.80 % Fibonacci retracement level which coincides with the strong support level near the 105 mark. This could lead to more buyers to rejoin the uptrend and could push the price all the way up toward the 109 mark in the coming days.
Now by looking at the EUR/USD screenshot we can see that the market is moving to the downside where lower highs and lows have been posted inside a bearish channel formation. The market is about to retrace to the 61.80 % Fibonacci retracement level which coincides with the strong resistance mark around the 1.03 level. This gives a great opportunity for sellers to rejoin the downtrend at a better price and the EUR/USD could be pushed back to the downside toward the 0.99 mark.