We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Real Time News
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.00% Gold: -0.88% Silver: -3.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KfxxIVn4PL
  • #Silver surged to $18.35 on Monday morning as risk aversion helped to boost assets with haven appeal but broke down on Tuesday. Get your market update from @PeterHanksFX here: https://t.co/8bYOAWhdwU https://t.co/ADfKBPBhMt
  • Bundesbank President Weidmann: - Inflation likely to undershoot ECB target for next couple years - September ECB stimulus not necessary to this extent $EUR
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.47%, while traders in US 500 are at opposite extremes with 71.18%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/bXp6LgsTwd
  • RT @LiveSquawk: US Congressional Budget Office (@USCBO) Annual Budget And Economic Outlook https://t.co/OQJv7k07Ap
  • Poll: What will have the biggest impact on global markets over the next 24 hours?
  • Congressional Budget Office sees US budget deficit of $1.015T in FY2020 $USD $TNX
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: US 500: 1.11% Wall Street: 0.83% Germany 30: 0.05% France 40: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7R1WRaktNS
  • RT @oliviabvoz: You have a 97.8% chance to survive Coronavirus if you get it
  • Commodities Update: NYM WTI Crude 53.46 (+0.60%), ICE Brent Crude 59.66 (+0.57%), NYM NYH Gasoline 150.61 (+1.49%). [delayed]
EURUSD: Signs of Bearish Reversal Mounting

EURUSD: Signs of Bearish Reversal Mounting

2011-03-24 11:01:00
Ilya Spivak, Sr. Currency Strategist
Share:

Being a EURUSD bear has been a deeply frustrating position recently as prices lurched agressively higher amid rising ECB rate hike expectations. Indeed, markets are now pricing in a 100 percent probablity of at least a 25bps increase at the April policy meeting.

..

With that in mind, it is important to bear in mind that the ECB was raising rates all the way into the single currency's major top at record highs above 1.60 in July 2008, so monetary tightening in and of itself may not keep the Euro afloat. Indeed, the currency will find itself with next to no support if policymakers fail to comprehensively resolve the sovereign debt crisis that has plagued the Euro Zone for the past two years, an outcome that looks increasingly unlikely in the near term.

..

Technically, prices are positioned just ahead of trend-defining resistance it the 1.42-1.43 area, a major inflection region that has acted as both significant support and resistance over recent years. The barrier is reinforced by a falling trend line set from teh record high. A bearish Rising Wedge pattern carved out since December as well as negative RSI divergence on both daily and weekly time frames argues for a bearish bias. With that in mind, I will remain on the sidelines until a confirmed break of the wedge bottom (now at 1.3965) clears the way to enter short.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.