EURUSD testing the 1.08-1.0850 support zone today. EURUSD bearish pattern is intact. Momentum indicators are all pushing lower so the trend is still in tact. But the 1.08 level needs to be broken and held before additional shorts are placed. If that level breaks, the target will be 1.04-1.0460 zone. Catalyst for this move could be this Friday's NFP if we get strong data. Divergence theme is strong with Fed looking for a cover to raise rates. However, if the NFP data is soft, EURUSD will probably rally back to the 1.10 resistance area.
Also, look at the breakout on the DXY (link attached). It's cleared the multi-month resistance around 97. Weekly chart is also ready to leap higher. Might we see another santa clause rally for the USD?