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
Oil - US Crude
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
More View more
Real Time News
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT for insight on London #FX and #CFD trading. Register here: https://t.co/AoM3UvLtcF https://t.co/SfyxfpLlC6
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/T63Op8nFm6
  • Today's FX option expiries - $EURUSD 1.0825-35 (1.1bln), 1.0850-60 (900mln), 1.0875-80 (1bln) - $AUDUSD 0.6675 (1.4bln) - $EURJPY 119.90 (873mln)
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.65%, while traders in USD/CAD are at opposite extremes with 69.06%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HhJsadutsV
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.12% Gold: -0.73% Silver: -1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lUE1dizUX7
  • Missed today's #AUDUSD weekly outlook webinar? See the recording here - https://t.co/8qO72jQ09n Topics included: - #Coronavirus fears' impact on AUD price action - Aussie Dollar technical analysis - #RBA, #Fed monetary policy outlook
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/SQidi62RGj
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.17% 🇦🇺AUD: 0.12% 🇨🇭CHF: 0.07% 🇯🇵JPY: 0.04% 🇪🇺EUR: 0.01% 🇳🇿NZD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/f8hmtUd9pl
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: 0.95% Wall Street: 0.88% Germany 30: 0.80% France 40: 0.76% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/6JMsIfRGtb
  • EUR/USD Technical Analysis: Euro Drop May Be About to Resume - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/02/25/EURUSD-Technical-Analysis-Euro-Drop-May-Be-About-to-Resume.html #EURUSD #technicalanalysis https://t.co/mn0q0xw02x
EUR/USD Likely To Face Whipsaw Price Action Ahead of the ECB Stress Tests Results

EUR/USD Likely To Face Whipsaw Price Action Ahead of the ECB Stress Tests Results

2010-07-22 18:24:00
Michael Wright, Currency Analyst

Fundamental Outlook

Markets may face increased volatility leading up to tomorrow’s highly anticipated EU’s stress tests results as uncertainty regarding the consequences surrounding any failed tests lingers. Indeed, the tests will include 91 banks, with two thirds in the public sector, while the outstanding one third will include banks across the private sector. Moreover, the number of banks will be comprised of a minimum of 50 percent of the lenders in the each country and 65 percent of the sector in the region. As of late, Bloomberg News stated that Germany’s Hypo Real Estate Holdings has failed the Europe wide stress tests, while the Portuguese government minister stated that he is awaiting the results of the tests with confidence. From what is understood thus far, lenders may be required to maintain a Tier 1 capital ratio of approximately 6 percent as a condition under the test. The three main scenarios under which the results will be based on include a sovereign risk scenario, an adverse macroeconomic situation, and a baseline macroeconomic forecast for the rest of this year and 2011. If the outcome is worse than expected, European Union Economic and Monetary Affairs Commissioner Rehn said that the union has means to fix any problems that may be found in the stress tests of banks. Indeed, policy makers have been exceptionally optimistic thus far, however, if the outcome shows that banks do not have enough capital to withstand another shock to the financial system, market participants may witness a flight to safety across all asset classes.

Technical Outlook


EUR/USD: After nearing overbought territory, price action has dipped back below the 100-Day SMA, with the intraday rally hovering slightly above this moving average. Indeed, we are likely to see a lackluster performance in this pair over the next few hours, and price action tomorrow will likely dictate further movements. It is worth noting that our speculative sentiment index stands at -1.34, signaling for additional gains. However, investors should not rule out the ratio flipping into the positive terrain on the back of the ECB stress tests.

For More Technical Analysis Visit the DailyFX Technical Page

Written by Michael Wright, Daily FX Research
To Receive Future Articles by Email, Please contact me at instructor@dailyfx.com
Michael Wright is the author of FX Headlines, Fundamentals vs. Technical's, Weekly Spotlight, and
Forex Trading Weekly Forecast


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


News & Analysis at your fingertips.