EURUSD Trade Setup – 3rd July

EURUSD begins the session with a constructive short-term bias as softer U.S. dollar momentum, improving risk sentiment, and a weaker DXY backdrop support the case for buying controlled pullbacks. The pair is holding firm above recent support, with price action continuing to build higher lows while the dollar struggles to reclaim lost ground. With U.S. holiday conditions likely to reduce liquidity later in the day, the preferred approach is to avoid chasing extended moves and instead look for clean entries into support or a confirmed breakout through near-term resistance. The key trade setup is to buy dips in the 1.1425–1.1435 area, or consider a momentum continuation entry on a confirmed break above 1.1455. Initial upside targets sit at 1.1485, followed by 1.1515, while a move back below 1.1405 would invalidate the bullish structure. EURUSD Trade Setup: Pair (spot) Bias & Entries (updated) Stop / Invalidation Targets Why A+ (Fundamentals / Technicals / Sentiment) Price action driver Near-term catalysts (UK) EURUSD LONG  –  Buy dips 1.1425-1.1435 or breakout >1.1455 Below 1.1405 T1: 1.1485 T2: 1.1515   Fundamentals: EURUSD is supported by a softer U.S. dollar backdrop after recent U.S. labour-market data reduced the urgency for further Fed tightening and encouraged some unwinding of long-dollar positioning. Technicals: Structure remains constructive while EURUSD holds above the 1.1405 invalidation area. Price is building higher lows, with the preferred entry zone around 1.1425–1.1435 offering a controlled pullback opportunity rather than chasing strength. Sentiment: EURUSD is benefiting from reduced demand for defensive USD positioning, while thin U.S. holiday liquidity may exaggerate moves if stops above near-term resistance are triggered. USD / DXY, US 10Y, oil shock Friday 3rd July: European PMIs, USD sentiment, holiday liquidity Chart by TradingView – EURUSD Trade Setup – 3rd July Conclusion Overall, EURUSD offers one of the cleaner A+ FX setups today, with the trade supported by a softer dollar narrative, positive technical structure, and a favourable risk backdrop. The setup is strongest while DXY remains under pressure and EURUSD continues to hold above the 1.1405 invalidation zone. Traders should remain mindful of reduced U.S. market participation due to the Independence Day holiday, as thinner liquidity can increase the risk of false breakouts and erratic price action. For that reason, the highest-quality opportunity is likely to come from a disciplined pullback entry rather than chasing strength after the initial European session move. A sustained break through 1.1455 would strengthen the bullish case and open the path toward 1.1485 and 1.1515. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar FX Trade Setups please visit our FX Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...