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
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
Gold
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
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
Bitcoin
Bullish
More View more
Real Time News
  • FDA confirms prior commentary from the CDC as an official states "we're on the cusp of a pandemic" #Coronavirus
  • FDA Official says coronavirus is on the cusp of pandemic - BBG
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: US 500: 0.87% Wall Street: 0.81% Germany 30: -0.59% France 40: -0.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/pk8P5ZKfem
  • German Health Minister Spahn: - No longer able to track all infection chains - BBG
  • German Health Minister Spahn says Germany at start of coronavirus epidemic $EURUSD
  • "Crude Oil Forecast: Support Bounce in Play as Volatility Fades" -via @DailyFX Crude oil ricochets off the 49.00 handle as the commodity catches bid while coronavirus concerns simmer and an OPEC meeting approaches. Full Analysis: https://www.dailyfx.com/forex/technical/home/analysis/usoil/2020/02/26/crude-oil-forecast-support-bounce-in-play-as-volatility-fades.html #OOTT $USO $CL_F https://t.co/7Xmh4c5ulX
  • RT @EconguyRosie: New home sales up 7.9%. Check. Clothing sales down 3.1%. Check. Utilities output down 4.0%. Check. People away from work…
  • US 1Yr-11Month FRNS Margin at 0.16% Primary Dealers Awarded: 70.1% Indirect Bidders Accepted: 28.6% Direct Bidders Accepted: 1.3% B/C Ratio: 2.49
  • #Gold Price Outlook: $XAUUSD #Coronavirus Breakout Fizzles- $GLD Levels - https://t.co/wAcvpLxyiq https://t.co/EgbHOoWIOM
  • US Treasury Yields: 2-Year: 1.185% 3-Year: 1.160% 5-Year: 1.165% 7-Year: 1.259% 10-Year: 1.337% 30-Year: 1.811% $TNX
EURUSD Price Forecast - Euro Sellers Taking Back Control

EURUSD Price Forecast - Euro Sellers Taking Back Control

2018-06-27 07:50:00
Nick Cawley, Analyst
Share:

EURUSD – The Main Market Points and Analysis

- German politics coming to a head shortly and Chancellor Merkel is under pressure.

- US-EU trade wars likely to get worse with the Automobile industry under fire.

- EURUSD looking at fresh multi-month lows. As latest rebound fails.

The latest IG Client Sentiment Indicator shows retail are 56.6% long EURUSD but recent positional changes give us a mixed trading bias.

EURUSD Rattled by Fundamentals while Technical’s Look Weak

EURUSD recent rally is being eroded by the ramping up of political tensions across the EU. Ongoing trade wars between the US and EU are unlikely to end anytime soon, and indeed are expected to be ramped up as national interests prevail - with the German automobile industry in the crosshairs - while German Chancellor Angela Merkel’s government is under threat as the migrant issue continues to divide opinion between the coalition partners. The three coalition parties have yet to find common ground on the issue and the fear is that if no solution is found shortly, the already shaky coalition may fail and bring down Chancellor Merkel with it.

The last ECB meeting also confirmed that rates in the single-block will remain low-for-longer with no rate hikes expected until at least Q3 2019.

EURUSD currently trades at 1.16650 and looks likely to test the downside. The pair fell back after hitting resistance around the 1.17200 in the last two sessions and are set to test support between 1.15540 and the June 21 low at 1.15080. Below here Fibonacci retracement cuts in at 1.1448 before a support zone between 1.1187 and 1.1108. The upside sees moving average resistance at 1.16840, Fibonacci retracement at 1.1710 and the 50-day ma at 1.17555.

EURUSD Daily Price Chart (July 2017 – June 27, 2018)

EURUSD Price Forecast - Euro Sellers Taking Back Control

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the EURUSD and the latest trade spat? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

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

DISCLOSURES

News & Analysis at your fingertips.