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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
EUR/USD Technical Analysis: Euro Perched at Key Trend Barrier

EUR/USD Technical Analysis: Euro Perched at Key Trend Barrier

What's on this page

EUR/USD TECHNICAL ANALYSIS: BEARISH

  • Euro testing key support after upswing is rejected near 1.10 figure
  • Break of support under 1.08 would probably expose March bottom
  • Trader sentiment studies warn a bullish disposition may be firming

The Euro was knocked back lower after a test of resistance near the 1.10 figure, with prices now testing rising trend support limiting the downside for nearly a month. Making the case for lasting weakness probably calls for a move through that to close under the lower bound of the 1.0783-1.0880 zone.

The swing low at 1.0636 might be back in play in that scenario. Alternatively, a rebound that allows EUR/USD to establish a foothold above the 1.0992-1.1009 region could pave the way for another challenge of the March 27 high at 1.1147.

Euro vs US Dollar price chart - daily

EUR/USD daily chart created with TradingView

The four-hour chart offers a sense of more immediate price levels of significance. A preliminary break of rising trend support seems to have played out already but the 1.0848-54 zone is holding back further weakness for now. The 1.0901-25 congestion band marks immediate resistance.

Euro vs US Dollar price chart - 4 hour

EUR/USD 4-hour chart created with TradingView

Building Confidence in Trading
Building Confidence in Trading
Recommended by Ilya Spivak
Building Confidence in Trading
Get My Guide

EUR/USD TRADER SENTIMENT

Retail positioning data shows 55.65% of traders are net-short, with the long-to-short ratio at 1.25 to 1. IG Client Sentiment(IGCS) is typically used as a contrarian indicator, sothe net-short skew in traders’exposure suggests that EUR/USD is biased upward.

In fact, the net-short tilt appears to be growing. Just over 10 percent more traders are betting on Euro weakness today than yesterday. Their ranks are up 33.16 percent relative to a week ago. That seemingly makes for a strengthening sentiment-based bullish trading bias.

Euro vs US Dollar price, trader sentiment

See the full IGCS sentiment report here.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Ilya Spivak
Improve your trading with IG Client Sentiment Data
Get My Guide

EUR/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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.

DISCLOSURES