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. See our updated Privacy Policy here.

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
Wall Street
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
More View more
Real Time News
  • 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/v6RGICQvge
  • 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/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • 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/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
EUR/USD Struggling to Find Traction as US Bond Yields Rise

EUR/USD Struggling to Find Traction as US Bond Yields Rise

Nick Cawley, Strategist

EUR/USD Price, News and Analysis:

The yield on the 10-year US Treasury hit its highest level (1.196%) in a year earlier in the European session, pushing the US dollar basket higher. US Treasury yields have been on the rise for the last few weeks as the US economy continues to pick-up from its pandemic-induced low. As inflation expectations start to grow further down the line, longer-dated US Treasuries reflect this by moving higher. One closely followed indicator – the 2/10-year UST spread - is at its widest level in over three years, due in part to rising inflation expectations and the Fed’s ongoing willingness to anchor short-term interest rates. In addition, the 10-year US Treasury offers over 160 basis points more yield than the German 10-year Bund, with this additional ‘carry’ helping to boost the US dollar against the Euro.

For all market-moving economic data and events, see the DailyFX Calendar.

Advertisement

Horizontal resistance around 1.2053 to 1.2058 is currently capping the pair’s upside, while the recent move below the 20-day simple moving average brings another level of resistance just under 1.2100. The first level of EUR/USD support kicks-in around 1.1920 which will take us back to levels last seen at the end of November. The pair have nearly finished making a rough head and shoulders pattern, and lower prices look more likely if this bearish pattern plays out.

EUR/USD Daily Price Chart (June 2020 – February 8, 2021)

EUR/USD Struggling to Find Traction as US Bond Yields Rise

IG Retail trader datashow 41.05% of traders are net-long with the ratio of traders short to long at 1.44 to 1.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/USD prices may continue to rise.Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed EUR/USD trading bias.

What is your view on EUR/USD – 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