Skip to Content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/USD: Looking for Opportunities to Buy Dips Heading Into U.S. ISM

EUR/USD: Looking for Opportunities to Buy Dips Heading Into U.S. ISM

Talking Points

  • EUR/USD eyeing near-term resistance ahead of U.S. ISM Services
  • Updated targets & invalidation levels

EURUSD 120min

Chart Created Using TradingView

Technical Outlook: EURUSD is trading within the confines of a median-line formation extending off the June / July lows with today’s rally now testing a key Fibonacci confluence at 1.1228/31. The immediate topside bias is vulnerable here but the trade remains constructive while above a pair of parallels which converge on the weekly opening-range low at 1.1155.

A breach higher targets the median-line parallel extending off the December low (~1.1250) backed by the descending upper median-line parallel extending off the yearly high (~1.1285).From a trading standpoint, I would be looking to fade euro weakness on a move lower with a break below 1.1076 needed to shift the broader focus back to the downside lower. For the complete setup and to continue tracking this trade& more throughout the week- Subscribe to SB Trade Deskand take advantage of the DailyFX New Subscriber Discount.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net short EURUSD- the ratio stands at -2.01(33% of traders are long)-bullishreading
  • Yesterday the ratio was -1.81. Short positions are 8.0% higher than yesterday and 53.7% above levels seen last week.
  • Open interest is 4.2% higher than yesterday and 14.5% above its monthly average.
  • SSI flipped to net short on last week as the exchange rate rebounded off structural support- constructive. An increase in long exposure on building open interest keeps the long-bias in play. That said, the pair is coming into key near-term resistance with the risk for a pullback before rallying to new highs

Help fine-tune you entries, click here to learn more about the DailyFX Grid Sight Index (GSI)

Relevant Data Releases This Week

Other Setups in Play:

Looking for more trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

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