EURUSD Price, Chart and Pivot Points:
- Lower highs and lower lows dominate EURUSD trade in 2019.
- Fundamentals point to weak growth in the Euro-Zone.
The most actively traded fx-pair, EURUSD, continues its drift lower over the past three months with upticks providing investors with selling opportunities. Lower highs and lower lows provide visual proof that the pair continue to weaken, while last Thursday’s print of 1.1176 was the lowest price seen in the pair since late-June 2017. Yesterday’s Ifo Spring Report suggesting that German 2019 growth would fall to just 0.6% added to the general bearishness around the pair, while Euro-Zone growth in the final quarter of 2018 was recently confirmed at a mere 0.2%, after a prior quarter’s skinny 0.1%.
Next week we have Euro-Zone sentiment indicators – ZEW on Tuesday and Markit PMIs on Friday – and another set of weak releases could see EURUSD re-testing its recent lows. Both sets of indicators are already at depressed levels, confirming current market sentiment.
EURUSD Daily Price Chart (May 2018– March 15, 2019)
Retail traders are 49.7% net-long EURUSD according to the latest IG Client Sentiment Data, a bullish contrarian indicator. Recent changes in daily and weekly sentiment however give us a mixed trading bias.