EUR/USD Price Analysis: Bulls are mounting up as US dollar runs into key monthly area

EUR/USD bulls could be about to make their move.
Traders are watching the US dollar for the start of the week and opening sessions.

Ross J Burland FXStreet

The euro could benefit at the start of the week so long as the greenback continues to correct to the downside. In the charts below, it is illustrated that the DXY is meeting a monthly supply area that could hold off the bulls for a moment giving a rise to prospects of a correction on the daily chart.

The DXY appears to top out near 107.80. A 61.8% Fibonacci retracement sits near prior swing highs near 105.70. If this were to play out, we would have had a bullish setup in the euro for the week ahead.

DXY monthly & daily chart

EUR/USD daily chart

A move lower in the greenback will see the euro climb the Fibo scale, potentially all the way towards the prior lows that meets a 61.8% Fibo.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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