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
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • (#ASEAN Fundy Weekly) The US #Dollar appears to be back on the offensive against ASEAN FX such as the Singapore Dollar and Malaysian #Ringgit. The Philippine Peso gained. What does #USD face from here? $USDSGD $USDPHP $USDMYR $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/06/US-Dollar-Back-on-the-Offensive-USDSGD-USDPHP-USDMYR-USDIDR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/8CKptvL6Uz
  • This thread 😂 https://t.co/9nek6fXA1t
  • This is the best one of the thread. https://t.co/dXGZZVzww7
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/ZzbHAVT6RE
  • LIVE IN 30 MIN: In this session, Currency Analyst @ZabelinDimitri will analyze the cross-asset impact of geopolitical risks affecting markets in the week ahead. https://www.dailyfx.com/webinars/146770987
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/jdzRaFJnaa
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.20% Gold: 0.06% Oil - US Crude: -3.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GqKRXlbHQc
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.42% 🇳🇿NZD: 0.30% 🇪🇺EUR: 0.07% 🇨🇭CHF: -0.04% 🇬🇧GBP: -0.24% 🇯🇵JPY: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6yhR5FFtZw
  • LIVE NOW: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.10%, while traders in US 500 are at opposite extremes with 68.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gvtwxfEvLB
EUR/USD Eyes 1.0580 Support Ahead of 4Q GDP

EUR/USD Eyes 1.0580 Support Ahead of 4Q GDP

2017-01-26 18:08:00
Michael Boutros, Strategist
Share:

Talking Points

EUR/USD Daily

EUR/USD Daily Chart

Technical Outlook: Euro reversed off parallel resistance extending off the December high this week- Note that the slope of this trendline originates from the broader descending median-line formation extending off the 2016 highs. A hold in daily RSI sub-60 also highlights the threat to the advance off the monthly lows.

EUR/USD 120min

EUR/USD 120min Chart

Notes: A closer look at price action shows Euro trading within the confines of a near-term ascending pitchfork formation extending off the December lows. Note that the break below the median-line / weekly open shifts the near-term focus lower with the decline already taking out initial targets at 1.0672. Subsequent support objectives at the 50-line (currently ~1.0650), the 38.2% retracement at 1.0609 & the lower parallel at 1.0580- area of interest for possible exhaustion / long-entries.

Consensus estimates are calling for a 2.2% q/q clip for US 4Q GDP, down from a previous read of 3.5%. Even though tomorrow’s release is expected to highlight a slowdown in both growth & inflation, the data is unlikely to move the needle as it pertains to monetary policy with Fed Fund Futures still pricing in a 74% probably for an interest rate hike in June. That said, from a trading standpoint, heading into the release I would be looking to fade strength while below the monthly / yearly high-day close at 1.0730 with a move lower targeting downside objectives into structural support.

EUR/USD Eyes 1.0580 Support Ahead of 4Q GDP
  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are short EUR/USD - the ratio stands at -1.22 (45% of traders are long)- weak bullish reading
  • Long positions are 21.2% higher than yesterday and 10.8% above levels seen last week
  • Short positions are 14.4% lower than yesterday but 12.9% above levels seen last week
  • Open interest is 1.3% lower than yesterday but remains 12.6% above its monthly average
  • The current dynamic of building long interest highlights the risk of further near-term weakness in price as the ratio continues to narrow from recent extremes of -1.77. Look for a flip to net long in the coming days to suggest that a more significant reversal is underway.

Relevant Data Releases

EUR/USD Eyes 1.0580 Support Ahead of 4Q GDP

Looking for trade ideas? Review DailyFX’s 2017 1Q Projections

Other Setups in Play:

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

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

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

DISCLOSURES

News & Analysis at your fingertips.