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
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
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
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
Mixed
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Breaking news

US and Chinese Negotiators are Reportedly Planning to Delay December Tariffs - WSJ

Real Time News
  • $USDCNH spiking lower after WSJ reports US and Chinese negotiators plan on delaying the Dec 15 tariff tranche, though the renminbi is still quite a ways away from the 7.0 handle. https://t.co/lV11Pp3b5j
  • RT @zerohedge: WSJ: Tariff delay to take place as US, China "continue to haggle over how to get Beijing to commit to massive purchases of U…
  • RT @C_Barraud: @niubi 🇺🇸 🇨🇳 U.S. and Chinese #Trade Negotiators Planning for Delay of December Tariff - WSJ https://t.co/PM9n9k9hU6
  • According to the Wall Street Journal, US and Chinese trade negotiators are planning for a delay of the December tariffs https://t.co/viwRApGxcS
  • RT @forexflowlive: #US & #China negotiators planning delay of 15th Dec tariffs: WSJ headline. $USD $CNH $CNY
  • RT @LiveSquawk: US Non-Farm Productivity/Unit Labor Costs Q3 F - Full Report https://t.co/y8wHV3WGw2 https://t.co/0qGiDMqbCY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.16%, while traders in US 500 are at opposite extremes with 77.97%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JPhkg7mmrj
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.22% 🇨🇭CHF: 0.21% 🇪🇺EUR: 0.12% 🇨🇦CAD: -0.03% 🇳🇿NZD: -0.16% 🇦🇺AUD: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/HqJnG86c0J
  • US House Speaker Pelosi to speak on USCMA at 1500GMT $CAD $MXN
  • RT @baldersdale: If gas did tear Riyadh and Doha apart almost three years ago, it has power to bring these energy superpowers together agai…
Euro Weekly Price Outlook: EUR/USD Recovery Could be Short Lived

Euro Weekly Price Outlook: EUR/USD Recovery Could be Short Lived

2019-05-05 04:00:00
Michael Boutros, Technical Strategist
Share:

Euro Weekly Price Outlook: EUR/USD Recovery Could be Short Lived

Euro is up 0.54% against the US Dollar this week after reversing from long-term slope support. These are the updated targets and invalidation levels that matter on the EUR/USD weekly price 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

EURUSD

Notes:In my previous EUR/USD Weekly Technical Outlook we note that, “Weekly support remains at 1.1186 with a break below the 2017 pitchfork support around 1.1130s needed to validate a larger break of the multi-year uptrend formation in Euro.” Price briefly registered a low at 1.1110 last week before reversing sharply off the lower parallel with Euro now attempting to mark a weekly close back above the 61.38% retracement at 1.1186 into the close of the week.

Resistance / near-term bearish invalidation stands with the August low / 2018 trendline at 1.1301 – A weekly close above this threshold is needed to suggest a more significant low is in place with such a scenario targeting the 2018 yearly open at 1.1445- look for a bigger reaction there IF reached.

A break below 2017 pitchfork support would shift the focus towards consolidation support extending off the 2018 lows, currently around ~1.1040s - weakness beyond this threshold would risk substantial losses for Euro with subsequent weekly support objectives eyed at 1.0854 & the 78.6% retracement at 1.0815.

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

Bottom line:Euro has responded to multi-year slope support and we’re looking for signs of basing in price action with a close above channel resistance needed to clear the way. A close here below 1.1186 would suggest / highlight the risk for another test of the lows before the potential for a larger recovery. From a trading standpoint, the risk remains lower sub-1.13 but be on the lookout for a downside price exhaustion / long-entries on a final test into the 2018 trendline. Review my latest EUR/USD Price Outlook for a look at the near-term technical picture.

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

EUR/USD Trader Sentiment

EURUSD
  • A summary of IG Client Sentiment shows traders are net-long EUR/USD - the ratio stands at +1.54 (60.6% of traders are long) – bearish reading
  • Traders have remained net-long since April 12th; price has moved 0.6% lower since then
  • Long positions are 9.9% higher than yesterday and 17.5% lower from last week
  • Short positions are 11.4% lower than yesterday and 21.4% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Traders are further net-long than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger EURUSD-bearish contrarian trading bias from a sentiment standpoint.

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

---

Relevant Euro / USEconomic Data Releases

EURUSD

Economic Calendar - latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide!

Other Technical Forecast

Australian Dollar (AUD) Outlook: AUDUSD Still Looking Into The Abyss?

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

Follow Michael on Twitter @MBForex

Other Weekly Technical Forecast

Crude Oil Weekly Technical Forecast: Support May Soon Lead to Rally

Euro Weekly Price Outlook: EUR/USD Recovery Could be Short Lived

Australian Dollar (AUD) Outlook: AUDUSD Still Looking Into The Abyss?

Pound Surge Has GBPUSD Range to Run, But Resistance Coming in Elsewhere

Gold Price Threatens Major Break After Bears Thwarted At Lows

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

DISCLOSURES

News & Analysis at your fingertips.