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
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
GBP/USD
Bullish
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
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The #Dow Jones moved confidently higher last week as it added onto recent gains. Now, #stocks will aim to continue their rally while enjoying support from prior all-time highs. Get your technical analysis on #equities from @PeterHanksFX here: https://t.co/Qb89HIWxBY https://t.co/HMguTvD157
  • How can you trade #forex after a major release? Find out: https://t.co/sdxcXb8q60 #tradingstyle https://t.co/LNcbvVhIc2
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/m763epaH2C
  • Crude #oil prices, $NOK and $SEK may rise if Donald Trump’s speech on trade war developments amplifies market buoyancy against the backdrop of critical US CPI and retails sales data. Get your market update from @ZabelinDimitri here:https://t.co/5rdK7xsQNq https://t.co/YnlQjKNZdS
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
  • What is the best time to trade #forex? Find out: https://t.co/M9R46r5ewa #tradingstyle https://t.co/gJ1QDrox67
Euro Price Outlook: EUR/USD Plummets into Technical Trend Support

Euro Price Outlook: EUR/USD Plummets into Technical Trend Support

2019-11-09 04:00:00
Michael Boutros, Technical Strategist
Share:

Euro Price Outlook:

Euro plummeted more than 1.2% against the US Dollar this week with EUR/USD clearing the bottom of a multi-week range in price. The decline puts into focus a key technical support confluence just lower and we’re looking for a reaction there next week IF reached. These are the updated targets and invalidation levels that matter on the EUR/USD weekly price chart. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this Sterling price setup and more.

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

Euro Price Chart – EUR/USD Weekly

EURUSD Weekly Price Chart

Chart Prepared by Michael Boutros, Technical Strategist; USD/JPY on Tradingview

Notes:In my last Euro Weekly Price Outlook we highlighted that EUR/USD was approaching a key resistance hurdle at 1.1186-1.1208. We noted that, “From a trading standpoint, look for downside exhaustion ahead of 1.0976/94 for possible long-entries.” Price held below key resistance with this week’s reversal now approaching key support at the yearly low-week close / 61.8% retracement.

A break / close below this threshold would be needed to suggest a larger correction is underway in the Euro with such a scenario once exposing the lower parallels (currently around ~1.09) and the 2016 November high-week, reversal-close at 1.0854. Resistance steady at 1.1186-1.1208- a pivot above this zone would target the first major test of yearly downtrend resistance at the January trendline near ~1.1270s.

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

Bottom line:Euro turned just ahead of major confluence resistance with the break of a multi-week range in price risking further losses heading into next week. That said, we’re looking for a reaction / possible exhaustion into confluence support just lower at 1.0976/94. From a trading standpoint, look to reduce short-exposure / lower protective stops on stretch into this threshold – re-assess the reaction there IF reached. I’ll publish an updated Euro Price Outlook once we get further clarity on the near-term EUR/USD technical trade levels.

Euro Trader Sentiment – EUR/USD Price Chart

Euro Trader Sentiment-EURUSD Price Chart
  • A summary of IG Client Sentiment shows traders are net-long EUR/USD - the ratio stands at +1.07 (51.7% of traders are long) – neutral reading
  • Long positions are3.94% higher than yesterday and 30.35% higher from last week
  • Short positions are 2.62% lower than yesterday and 7.84% 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. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger EUR/USD-bearish contrarian trading bias from a sentiment standpoint.

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

---

Previous Weekly Technical Charts

Learn how to Trade with Confidence in our Free Trading Guide

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

Follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.