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GBPUSD: Sterling has pulled back from slope resistance and is responding to initial support at 1.2828/54. Looking for a reaction here heading into the close of the week with our levels / outlook unchanged- If we break, we’ll be looking for exhaustion / long entries on a move into structural support with a breach above the weekly open at 1.2984 needed to put the bulls back in control.
EURUSD: The pair is struggling after breaking below support at 1.0872. Heading into the close of the week we could get one more thrust lower but I’m generally looking for a low in in the pair around 1.0820/30 if our interpretation is correct.
See our 2Q Euro projections and more in the DailyFX Trading Forecasts.
- A summary of IG Client Sentiment shows traders are net-short EURUSD- the ratio stands at -1.65 (37.7% of traders are long)- bullish reading
- Retail traders have been net-short since April 18- the pair is up 2.5% since then
- Long positions are 10.6% lower than yesterday but 28.7% above levels seen last week
- Short positions are 0.2% lower than yesterday and 6.5% lower from last week
- While broader sentiment continues to point higher, the recent narrowing in the ration does leave the immediate topside bias vulnerable heading into tomorrow’s U.S. event risk. From a trading standpoint, I’ll favor fading weakness into structural support near confluence support into 1.0820.
What do shifts in retail positioning hint about the broader Euro trend? Learn how Sentiment can help your trading in this free guide!
Yesterday we noted the risk for continued weakness in USDMXN with the decline now taking out the weekly open & weekly opening-range lows. The focus remains weighted lower sub-19.1230 heading into the close of the week with near-term support seen at 18.7837 backed by 18.6631.
---Written by Michael Boutros, Currency Strategist with DailyFX