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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
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
More View more
Real Time News
  • What are some factors driving AUD? Get your free forecast for this quarter here:https://t.co/z85CIVYiuK #DailyFXGuides https://t.co/nd93gXDswq
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/xeidoj2K9f
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/1rhLp4LnfN
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/RKYGzRStvL
  • The US Dollar is moving higher after a blowout NFP report bolstered confidence in the US economic recovery. Markets will now turn attention to next week’s US inflation data which could boost the Greenback. Get your market alert from @FxWestwater here: https://t.co/Ud62r3hKRF https://t.co/dvvDCJvlbP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/7g9pB8D9xK
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/OCLzmXaDCu
  • Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/UZela9nSIm
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/7oqC3ykBbU
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/IgUIG55MbH
EUR/USD Stalls at Resistance Ahead of ECB, Comey

EUR/USD Stalls at Resistance Ahead of ECB, Comey

Michael Boutros, Strategist

Talking Points

EUR/USD Daily

EUR/USD Daily Chart

Technical Outlook:Last month we noted that the Euro rally had failed just ahead of resistance at 1.1285 with our broader outlook weighted to the topside while above confluence support at 1.1129. Indeed prices probed deep into this level before rebounding sharply to close higher on the day. (low was 1.1109). Prices finally made a test of key resistance on Friday (high was 1.1285 on the mark) on building momentum divergence with the weekly & monthly opening-range now taking shape just below.

Look for a break head into the European Central Bank (ECB) rate decision on Thursday with our broader bullish invalidation level now raised to former trendline resistance, currently around ~1.1160. “A topside breach targets initial resistance objectives at 1.1343 backed closely by 1.1366 and the 2017 high-day close at 1.1495.”

EUR/USD 120min

EUR/USD 120min Chart

Notes: We’ve continued to track this near-term slope extending off the April lows with the lower parallel now converging on Friday’s low at 1.1205- the near-term outlook remains constructive while above this level with a break below 1.1160 needed to suggest a more meaningful correction is underway.

From a trading standpoint, the long bias is at risk sub-1.1285 and I’ll favor fading a decline into 1.12 OR buying a breach & retest of 1.1285 as support. Added caution is warranted heading the interest rate decision with the release likely to fuel increased volatility in the Euro crosses. Keep in mind that former FBI Director James Comey will also be testifying before the senate intelligence committee on Thursday and could further stoke dollar volatility alongside broader risk assets.

EUR/USD Stalls at Resistance Ahead of ECB, Comey
  • A summary of IG Client Sentimentshows traders are net-short EUR/USD- the ratio stands at -2.71 (26.9% of traders are long)- bullish reading
  • Retail has been net-short since April 18th – price has rallied 6.3% higher since
  • Long positions are 5.0% lower than yesterday but 2.1% higher from last week
  • Short positions are 3.5% higher than yesterday but 4.4% lower from last week
  • While broader sentiment continues to point higher for the Euro, it’s worth noting that the recent reduction in short-positions from last week leaves the immediate long-bias vulnerable while below resistance. That said, from at trading standpoint, I’ll still favor fading weakness while above structural support around the 1.12-handle.

See how shifts in EURUSD retail positioning are effecting market trends- Click here to learn more about IG Client Sentiment indicators!

---

Relevant Data Releases

EUR/USD Stalls at Resistance Ahead of ECB, Comey

Other Setups in Play:

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on 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