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
Bullish
Oil - US Crude
Mixed
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
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
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/nHXiNJhLes
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/h0TmJcZeqr
  • $USDCAD sold off aggressively last week, putting it into position to test the important 2017 low; trading bias is neutral to bearish. Get your market update from @PaulRobinsonFX here: https://t.co/sphxUAW9TB https://t.co/ZhsTeJOOM8
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/qP96xmgDVn
  • The pro-risk Australian Dollar may extend gains after the record miss in US jobs data, amplifying dovish rhetoric from the Federal Reserve and keeping the Dow Jones and S&P 500 intact. Get your market update from @ddubrovskyFX here: https://t.co/yf8mPX3O3W https://t.co/uCCmjaxUhF
  • Who else is keeping close tabs on Dogecoin $DOGE this weekend? All eyes on Elon Musk @elonmusk, the proverbial 'Dogefather,' and his Saturday Night Live @nbcsnl performance kicking off at 11:30PM ET. The #crypto is already looking nice and perky following that trendline break! https://t.co/nrQsnlUqWj https://t.co/4lOz6NLQTG
  • There is some very interesting event risk over the opening half of this coming week of trade. It starts with Elon Musk hosting SNL tonight for Dogecoin traders and moves into US inflation data to as means to stir the ongoing Fed debate and Dollar https://www.dailyfx.com/forex/video/daily_news_report/2021/05/08/Dollar-Tumbles-Dow-Hits-Record-Highs-and-Dogecoin-Traders-Tune-In.html https://t.co/LXhjv7ToWC
  • It was a big week for Gold bulls and Gold prices broke out to fresh two-month-highs, finally taking-out the 1800 level along the way. Get your market update from @JStanleyFX here: https://t.co/D222Ni37Dv https://t.co/KcMYyx3Ro4
EUR/GBP Price Forecast: EURGBP Tests Key 0.9000 Psychological Level

EUR/GBP Price Forecast: EURGBP Tests Key 0.9000 Psychological Level

Richard Snow, Markets Writer

EUR/GBP Analysis:

  • EUR/GBP failed to test the June high and has bounced off the psychological 0.9000 level
  • The pair suffered losses following the conclusion of the EU recovery fund deal and surging UK public borrowing figures
  • Sentiment data shows that roughly 58% of traders are net-short, with an influx of long traders entering the market over the last 24 hours

EUR/GBP Moves Lower After Failed Retest of June Highs

After the July 13 bullish advance, the pair had shown signs of buyer exhaustion via multiple long upper wicks in the candle formation leading up to the June high of 0.9176. Long upper wicks tend to suggest that there is a rejection of higher prices at those levels taking place. This observation is further supported when there are multiple candles exhibiting long upper wicks, as there were from 14 – 20 July.

The move lower comes after a deal was agreed upon by EU leaders regarding the recovery fund and despite worse than expected UK public-sector borrowing figures.

EUR/GBP Daily Price Chart

EURGBP daily chart

Chart prepared by Richard Snow, IG

EUR/GBP Strategy Moving Forward

The daily chart below highlights the significant area of support for EUR/GBP (orange rectangle). This area represents an area of confluence as the psychological 0.9000 level almost overlaps with the 38.2% fib level to form a support zone. A close below the 0.9000 and 0.8988 levels could see price action move towards the recent swing low at 0.8940.

A late resurgence, after the close of the London trading session had seen bulls push price action up off the 0.9000 level. Bullish traders that may view this as the start of another upswing will be eying the 0.9139 level and should bullish momentum persist from there, possibly even a retest of the June high of 0.9176.

EUR/GBP Daily Chart Showing Key Trading Levels

EURGBP daily chart showing key trading levels

Chart prepared by Richard Snow, IG

EUR/GBP Sentiment: IG Trader Positioning

  • At the time of writing, retail trader data shows 58% of EUR/GBP traders are net-short with the ratio of traders short to long at 1.38 to 1.
  • The number of traders net-long is 24.79% higher than yesterday and 10.33% higher from last week, while the number of traders net-short is 10.09% lower than yesterday and 3.95% higher from last week.
  • When operating with a contrarian view with respect to crowd sentiment, considering that traders are net-short would suggests EUR/GBP prices may continue to rise.
  • Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current EUR/GBP price trend may soon reverse lower despite the fact traders remain net-short.

--- Written by Richard Snow for DailyFX.com

Contact and follow Richard on Twitter: @RichardSnowFX

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

DISCLOSURES