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
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇧🇷 Inflation Rate YoY (APR) due at 12:00 GMT (15min) Expected: 6.76% Previous: 6.1% https://www.dailyfx.com/economic-calendar#2021-05-11
  • RT @KyleR_IG: https://t.co/dvJqnUZcsk
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.02%, while traders in Wall Street are at opposite extremes with 74.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5Tt68HR25h
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/dOChzDPvBW
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.26% Oil - US Crude: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FgSiJ4PcT3
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇳🇿NZD: 0.27% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.05% 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qhfolQdLUG
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.43% US 500: -0.70% France 40: -1.89% FTSE 100: -2.07% Germany 30: -2.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HjUzIke5gV
  • ZEW economic sentiment soars in May. #zew #euro #eurusd @DailyFX https://t.co/jEIeoeotgq
  • 💶 ZEW Economic Sentiment Index (MAY) Actual: 84 Previous: 66.3 https://www.dailyfx.com/economic-calendar#2021-05-11
Euro Forecast: EUR/USD Bulls Eyes Key Resistance as US Dollar Loses Steam

Euro Forecast: EUR/USD Bulls Eyes Key Resistance as US Dollar Loses Steam

Justin McQueen, Analyst

EUR/USD Price Analysis & News

  • EUR Benefits as USD Loses Steam
  • Key Resistance in Focus
  • Client Signal Remains Bullish EUR/USD

As the USD continues to lose steam, the Euro remains among the key beneficiaries with the currency primed to test resistance at 1.1990-1.2000 following yesterday's break above the weekly high (1.1927). The US CPI beat did little for the greenback, which isn’t surprising given that not only is the increase predominantly due to base effects but also the Fed has stated on numerous occasions that they will overlook short term spikes in inflation and therefore has little implications for monetary policy at present.

In light of the recent squeeze of short EUR/USD positions, the question now is whether there is further fuel for a consistent rise. There is a sense now, that we have gone past peak bearishness in the Euro given that it has been well documented that Europe is lagging the Covid recovery with lockdowns extended and thus would have been largely reflected in the price. Going forward the theme will be about Europe playing catch up in the medium term, however, in the short run, I have a more tactical bias with a 1.1990 break to open the doors to 1.2026 (50% Fib of 2021 peak to 2021 bottom). On the downside, key support remains at 1.1855-60, in which topside momentum would likely be invalidated should we close below there.

Taking a look at the calendar, both ECB and Fed Chairs are scheduled to speak today, although the latter is unlikely to deviate away from comments made on Sunday, where Fed Chair Powell stated that the economy was at an inflection point. Elsewhere, sizeable option expiries could see spot rather sticky at 1.1950-60 with $1.1bln rolling off at the 10 am NY cut.

EUR/USD: Chart: Daily Time Frame

Euro Forecast: EUR/USD Bulls Eyes Key Resistance as US Dollar Loses Steam

Source: Refinitiv

IG Client Sentiment Signals Remain Bullish EUR/USD

  • Retail trader data shows 38.87% of traders are net-long.
  • Ratio of traders short to long at 1.57 to 1.
  • The number of traders net-long is 4.94% lower than yesterday and 12.47% lower from last week, while the number of traders net-short is 2.47% lower than yesterday and 10.11% higher from last week.
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/USD prices may continue to rise.
  • Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bullish contrarian trading bias.
Euro Forecast: EUR/USD Bulls Eyes Key Resistance as US Dollar Loses Steam

Source: DailyFX, IG

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

DISCLOSURES