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
EUR/USD
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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Get our analysts’ view on the key fundamentals for indices in Q2. Download now. https://t.co/Etdyanp76f https://t.co/n2wxfyMsJt
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/5KaUvfGM4I
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/9Bjkh5413e
  • 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/FqAsp91Gia
  • 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/cKOUmtj7Dj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/TnL91f7sl7
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/KWOX5wSipe
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/cwSWCpKtaj
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/zu5hMovbz6
EUR/USD Forecast: Euro Traders Remain Cautious Ahead of German CPI

EUR/USD Forecast: Euro Traders Remain Cautious Ahead of German CPI

Warren Venketas, Markets Writer

EUR/USD Price Analysis

Advertisement

EUR/USD PATIENTLY AWAITS UPCOMING ECONOMIC DATA

German inflation figures will be in the spotlight today as a precursor to broader Euro data tomorrow (see calendar below). Coming off a lively Friday last week, EUR/USD has been relatively subdued this Monday perhaps due to public holidays in both the U.S. and UK today.

Inflation has been a recurring global theme this year and the ECB faces similar bond buying questions to its U.S. counterparts as yields continue to track the prevailing uptrend. The U.S. will also release PMI data tomorrow which could result in significant price volatility should actual data deviate significantly from estimates.

Last week all 27 nations within the EU have approved the 750 billion recovery fund which comprehensively details frameworks for each country. Once stimulus starts to flood the market, it will be interesting to monitor the effect on the surging Euro.

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

EUR/USD economic calendar

Source: DailyFX Economic Calendar

EUR/USD TECHNICAL ANALYSIS

EUR/USD Daily Chart:

EUR/USD daily chart

Chart prepared by Warren Venketas, IG

Since the end of March this year, the Euro has been steadily appreciating against the U.S. dollar; primarily due to dollar weakness. This has formed a firm trendline support (black) which has held despite being tested several times over this period.

The last few preceding daily candles have been indicative of hesitancy, which is apparent by the successive Doji candle prints. Doji candles represent a lack of directional bias by bulls and bears revealed by their small candle bodies.

The Moving Average (MA) indicator has recently supplied bulls with additional incentive with the 50-day (black) MA crossing above both the 100-day (red) and 200-day (yellow) MA’s respectively. These strong bullish signals may provide further upside should prices remain above trendline support.

Contrary to the bullish signals mentioned above, the Relative Strength Index (RSI) (black) exhibits a slowing bullish momentum which is opposed by EUR/USD price action. This is known as divergence between price and the RSI – more specifically bearish divergence which is suggestive of a possible price reversal to the downside. Divergence can appear for prolonged periods so assuming an immediate continuation is not wise.

{{WEBINAR|140187219 |Keep up to date with key technical developments!}}

Bulls may look to a candle close above the key psychological level at 1.2200 before entering into possible long positions with an initial resistance target at 1.2267 (previous swing high); while the bearish perspective will bring into focus last week Friday’s support low at 1.2133.

IG CLIENT SENTIMENT DATA FAVORS NEITHER BULLS NOR BEARS

IGCS shows retail traders are currently distinctly short on EUR/USD, with 63% of traders currently holding short positions (as of this writing). At DailyFX we typically take a contrarian view to crowd sentiment however, because the daily change in long positions (-21%) exceeds that of short positions (-2%) the resultant signal remains mixed which is consistent with the technical analysis outlined above.

--- Written by Warren Venketas for DailyFX.com

Contact and follow Warren on Twitter: @WVenketas

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

DISCLOSURES