Skip to content
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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
More View more
EUR/USD Technical Analysis: Euro Eyes Break of 2020 Downtrend

EUR/USD Technical Analysis: Euro Eyes Break of 2020 Downtrend

Ilya Spivak, Head Strategist, APAC


  • Euro poised to overcome early-2020 downtrend, exposing the 1.12 mark
  • Longer-term chart setup hints recent gains corrective within downtrend
  • Retail trader sentiment studies argue for continued EUR/USD recovery

The Euro is flirting with breaking its 2020 downtrend after launching a recovery from a three-year lowagainst the US Dollar,as expected. A daily close above support-turned-resistance in the 1.0992-1.1009 area would violate the series of lower highs set from the beginning of the year,

In this scenario, EUR/USD seems likely to have scope for a test of back-to-back resistance levels running up through the upper bound of recently broken upward-slowing support set from October 2019, now recast as resistance. Closing above that – now just below 1.12 – appears to be a pre-requisite to make the case for lasting upside follow-through.

Euro vs US Dollar price chart - daily

EUR/USD daily chart created with TradingView

Zooming out to the weekly chart, the longer-term downtrend in play since mid-2018 remains firmly intact. This paints recent gains as broadly corrective, at least for now. Traders may thus treat the rise as a selling opportunity if concrete signs of topping appear to take shape at trend resistance.

Euro vs US Dollar price chart - weekly

EUR/USD weekly chart created with TradingView


Chart of Euro vs US Dollar exchange rate, trader sentiment

Retail sentiment data shows 52.02% of traders are net-short, with the short-to-long ratio at 1.08 to 1. The number of traders net-short is 33.78% higher than yesterday and 79.92% higher from last week, while the net-longcount is 32.91% lowerthan yesterday and 53.11% lower from last week.

IG Client Sentiment(IGCS) is typically used as a contrarian indicator, and traders being net-short suggests EUR/USD may continue to rise.Traders are further net-short than yesterday and last week, which offers a stronger bullish sentiment-derived trading bias.

See the full IGCS sentiment report here.


--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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