EURUSD & GBPUSD: The US Dollar Is ONE Level Away From a Major Turning Point

AI-generated source summary

The Euro has been in a consistent downtrend throughout 2026, trading within a descending channel. Multiple breaks of structure to the downside indicate bearish sentiment. The price action shows lower highs and lower lows. Currently, EURUSD is consolidating but remains within the bearish channel. A key support level to watch is at 1.10650, which has historical significance and was a previous support in late 2025. A break below this level would likely accelerate the downtrend. Conversely, a failure to break this support and a subsequent reclaim of higher prices, particularly above 1.12800, could signal a shift in momentum. The US Dollar Index (USDIDX), conversely, shows a strong uptrend. After consolidating in a range for much of late 2026, it has shown a break of structure to the upside, forming higher highs and higher lows. Current price action suggests continuation of the bullish trend. A key level to monitor is the 102.080 resistance. A confirmed break and hold above this level would signal further upside potential, targeting 103.000. Failure to break this resistance and a subsequent drop below 101.200 would indicate a loss of upward momentum, potentially leading to a deeper correction.

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