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
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
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
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • USD strength has shown in September but that’s been a change-of-pace to the bigger-picture trend of weakness. Which will take over in Q4? Get your $USD market update from @JStanleyFX here:https://t.co/BAFre6au9x https://t.co/SL8kg2GlH0
  • Pelosi says stimulus talks with Mnuchin will continue - BBG
  • Update on #Cryptocurrencies #BITCOIN -0.55% #BITCOINCASH -0.35% #ETHEREUM -0.68% #RIPPLE -0.46% #LITECOIN +1.08%
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.28% Gold: -0.31% Silver: -3.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/E9jn9lVQkj
  • US Dollar: Ready to Rumble with High-Impact Data - EURUSD, AUDUSD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/09/30/US-Dollar-USD-Ready-to-Rumble-High-Impact-Data-EUR-USD-AUD-USD.html https://t.co/4NyN3ROIwJ
  • Senator McConnell signals that a deal is still far off on stimulus $SPX $DJI $DXY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.18%, while traders in Wall Street are at opposite extremes with 69.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cF2BM1c9q9
  • In the very short term, price action in USD/CAD is likely to be distorted by month-end flows. The general view is that month-end is expected to be USD supportive. Get your $USDCAD market update from @JMcQueenFX here: https://t.co/skS3cCMzB4 https://t.co/4o7EFmM86G
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.89% US 500: 1.53% FTSE 100: 0.20% France 40: 0.07% Germany 30: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/o3yVsioOC5
  • Fed's Bowman: - Continued monetary and targeted fiscal support may be needed - If virus worsens asset prices will be vulnerable to price drops - BBG
EUR/GBP Price Latest: Back Above Supportive Short-Term Trendline

EUR/GBP Price Latest: Back Above Supportive Short-Term Trendline

2020-07-17 09:58:00
Nick Cawley, Strategist
Share:

EUR/GBP – Price, Chart and Analysis:

  • EUR/GBP pushing higher as EU leaders meet to discuss EUR750 billion recovery plan.
  • Retail trader data shows EUR/GBP net-longs falling.
Top Trading Lessons
Top Trading Lessons
Recommended by Nick Cawley
Find Out the No.1 Mistake Traders Make
Get My Guide

The EU heads of state are in Brussels today, to start discussions over a EUR750 billion COVID-19 recovery plan in an effort to boost the ailing Eurozone economy. The plan, so far suggested as EUR500bn in grants and EUR250bn in loans, will likely run into opposition from four or five member states who are demanding strict conditions and controls on the handouts, leaving a decision unlikely this weekend. The Netherlands continue to push back against the amount of grants on the table, while the other members of the ‘frugal four’ (Austria, Sweden and Denmark) are looking for more control in the way the funds are dispersed. The post-COVID-19 recovery is unlikely to be passed this weekend but it is expected to be passed before the Autumn break with amendments to make sure that all member states are onside.

The latest IG Client Sentiment Report shows retail traders trimming their net-long EUR/GBP positions recently. Retail trader data shows 37.62% of traders are net-long with the ratio of traders short to long at 1.66 to 1.The number of traders net-long is 10.73% lower than yesterday and 17.75% lower from last week, while the number of traders net-short is 0.66% higher than yesterday and 14.87% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/GBP prices may continue to rise. The combination of current sentiment and recent changes gives us a stronger EUR/GBP- bullish contrarian bias.

EUR/GBP BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 16% -7% 3%
Weekly 18% -22% -7%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

The daily EUR/GBP chart shows that the pair have regained the recent uptrend and now trade back above all three moving averages. The recent move higher has also taken out the 38.2% Fibonacci level at 0.9035, leaving Tuesday’s 0.9113 high and the late June multi-month high at 0.9176 as short-term targets if positive sentiment persists.

EUR/GBP Daily Price Chart (January – July 17, 2020)

EUR/GBP Price Latest: Back Above Supportive Short-Term Trendline

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What is your view on EURGBP – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES