EUR/USD bounces from 34-month lows. A deeper correction might be underway. EUR/USD daily chart EUR/USD is trading in a bear trend below the main daily simple moving averages (SMAs) as the market is rebounding from 34-month lows. EUR/USD four-hour chart The euro broke below a descending channel and bounced from the 1.0800 level. The market regained the 50 SMA as bulls are creating a reversal up. The spot would need to overcome the 1.0878 resistance to ceate a deeper pullback up towards the 1.0923 and 1.0985 levels. Support is seen near 1.0844 and 1.0800 price levels, according to the Technical Confluences Indicator. Resistance: 1.0878, 1.0923, 1.0985 Support: 1.0844, 1.0800, 1.0660 Additional key levels

DXY erased the last two days of gains as the market is pulling back down from 2020 highs. Sellers are expecting a deeper retracement below the 99.20 support level. DXY daily chart The US dollar index (DXY) is pulling back down, on track to close below the 2019 high at 99.67 level. DXY erased the gains of the last two days this Friday. DXY four-hour chart DXY fell sharply and tested the 50 SMA. The trend remains bullish however a deeper pullback cannot be ruled out. Bears can try to break below the 99.20 support and generate an extention down towards the 99.00 and 98.80 support level. A resumption of bullish movements can find resistance near the 99.40 and 99.65 levels. Additional key levels