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.

Free Trading Guides
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
GBP/USD
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
USD/JPY
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
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
Bitcoin
Mixed
More View more
Real Time News
  • RT @StockBoardAsset: [RTRS] (USONRP=) 21 Jan - 08:49:34 AM - NY FED ACCEPTS $58.626 BLN IN BIDS SUBMITTED AT OVERNIGHT REPO OPERATION -NY…
  • RT @StockBoardAsset: (USONRP=) 21 Jan - 08:18:03 AM - NY FED ACCEPTS $32.15 BLN IN BIDS SUBMITTED AT 14-DAY REPO OPERATION -NY FED WEBSIT…
  • US Dollar Pulls Back from Resistance Test: AUD/USD, GBP/USD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/01/21/US-Dollar-Pulls-Back-From-Resistance-Test-AUDUSD-GBPUSD-js57-usd-price-chart.html https://t.co/jEutt33Io4
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/mDSGjzscBT
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.71%, while traders in Wall Street are at opposite extremes with 75.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/0rZ8anYrWW
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.48% 🇨🇭CHF: 0.19% 🇪🇺EUR: 0.18% 🇳🇿NZD: 0.05% 🇦🇺AUD: -0.02% 🇨🇦CAD: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ueTnNYQdMV
  • RT @LJKawa: On the upcoming VIX futures roll after opex week: A wrinkle in volatility markets has stock jocks braced for pain https://t.co…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.70%, while traders in Wall Street are at opposite extremes with 75.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dCUxr4X5Bi
  • RT @C_Barraud: 🇨🇳 #China | #PBoC pumped 100 billion yuan (about 14.58 billion U.S. dollars) into the financial system via reverse repos on…
  • RT @DeItaOne: MNUCHIN: COMING BUDGET WILL HAVE A NEW MIDDLE CLASS TAX CUT
Weekly Technical Perspective on the Euro (EUR/USD)

Weekly Technical Perspective on the Euro (EUR/USD)

2018-06-25 16:57:00
Michael Boutros, Technical Strategist
Share:

In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. Euro responded to confluence support last week and the focus is on validating a larger reversal in price. Here are the key levels that matter on the EUR/USD weekly chart. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

EUR/USD Weekly Price Chart

EUR/USD Weekly Price Chart

Notes: Euro rebounded off confluence support last week around 1.1606 - where the October low-close converges on the median-line of the broader ascending pitchfork formation and basic trendline support extending off the 2016 low. We’ve been tracking this support region in EUR/USD for over a month now and last weeks’ reversal candle on building RSI divergence suggests the near-term risk remains weighted to the topside against this threshold.

Weekly resistance stands at 1.1910/30 backed closely by the yearly open at 1.2005- a breach / close above is needed to suggest a more significant low is in place (note the pending resistance trigger in RSI). A downside break from here targets the 50% Fibonacci retracement which converges on parallel support, at 1.1448.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: Euro is threatening a larger recovery here with our focus higher for now while above the 1.16-handle. Note that a break of the yearly opening range did shift the broader focus lower and price would need to surpass yearly open resistance to refute this signal. A break lower from here risks a drop towards more significant support at 1.1448- look for a more prominent reaction there IF reached. Stay nimble here until we get more evidence to support a reversal play- review basic principles on how we approach trading the turn.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

EUR/USD IG Client Positioning

EUR/USD Trader Positioning
  • A summary of IG Client Sentiment shows traders are net-long EUR/USD- the ratio stands at +1.26 (55.7% of traders are long) –weak bearishreading
  • Traders have remained net-long since June 14th; price has moved 1.0% lower since then
  • Long positions are 0.8% lower than yesterday and 10.4% lower from last week
  • Short positions are6.4% higher than yesterday and 0.5% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/USD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse higher despite the fact traders remain net-long.

See how shifts in EUR/USD retail positioning are impacting trend- Learn more about sentiment!

Relevant EUR/USD Data Releases

EUR/USD Economic Calendar

Economic Calendar– for the latest economic developments and upcoming event risk

Previous Weekly Technical Perspectives

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.