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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
Mixed
Gold
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
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
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 0.99% Gold: 0.14% Oil - US Crude: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WLLkyZNDig
  • #DAX: A breakout above 12913 could soon have the gap-down in focus from February that kicked off the massive Q1 sell-off. Get your DAX market update from @PaulRobinsonFX here: https://t.co/Cw29vVEcxI https://t.co/Z3fN7K5kpX
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.02%, while traders in US 500 are at opposite extremes with 74.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/n5Xuy8XTuC
  • #Fed Beige Book: - Employment increased on net in nearly all districts - Payrolls remain well below pre-pandemic level in almost all districts $DXY
  • #Fed Beige Book: - Economic activity increased in nearly all districts, but down from pre-pandemic levels - Retail sales led by rebound in auto sales - Most districts report uptick in manufacturing activity - Construction remains subdued $DXY
  • RT @MarketsTicker: Fed's Beige Book says activity increased in almost all districts but remains well below pre-pandemic levels
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.69% Wall Street: 0.64% Germany 30: -0.22% FTSE 100: -0.22% France 40: -0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/uVAPLeD1hH
  • New York #Fed Executive VP Logan says drop in balance sheet a signal of financial market health - BBG
  • The plunge in gold volatility has not seen an ensuing drop in gold prices – more evidence that our longstanding axiom on the gold volatility-gold price relationship holds true. Get your $XAUUSD market update from @CVecchioFX here: https://t.co/GeXl10ibPv https://t.co/xH8yBn8qAG
  • Heads Up:🇺🇸 Fed Beige Book due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-07-15
EUR/USD Technical Analysis: Euro Turn Brewing at 3-Month High?

EUR/USD Technical Analysis: Euro Turn Brewing at 3-Month High?

2020-06-04 05:00:00
Ilya Spivak, Head Strategist, APAC
Share:

EUR/USD TECHNICAL ANALYSIS: BEARISH

  • Euro at 3-month highs after sharp seven-day climb vs US Dollar
  • Near-term chart positioning warns that a top might be forming
  • Sentiment studies may be nearing a bullish positioning extreme

A spirited Euro recovery brought the currency through range resistance and extended to the highest level since mid-March, scoring an impressive seven-day winning streak along the way. Prices are now perched ahead of inflection point resistance at 1.1239. Breaking above this barrier on a daily closing basis seems to set the stage for a run at the 2020 swing top at 1.1496.

Euro vs US Dollar price chart - daily

EUR/USD daily chart created with TradingView

Alternatively, a move below resistance-turned-support at 1.1147 probably opens the door for a pullback to retest the recently broken range top near the 1.10 figure. In fact, zooming in to the four-hour chart suggests this may well be the way forward. The appearance of a bearish Evening Star candlestick pattern coupled with negative RSI divergence hints that a top may be taking shape.

Confirmation of bearish reversal requires a breach of rising trend line support guiding the past week’s climb and defining the near-term upward bias. Managing to do so is likely to put prices in close-enough proximity to support at 1.1147 to demand a further breach of this barrier to make for a short trade setup with acceptable risk/reward parameters.

Euro vs US Dollar price chart - 4 hour

EUR/USD 4-hour chart created with TradingView

EUR Forecast
EUR Forecast
Recommended by Ilya Spivak
Get Your Free EUR Forecast
Get My Guide

EUR/USD TRADER SENTIMENT

Trader sentiment data warns would-be sellers against over-extrapolating the case for weakness just yet however. IG Client Sentiment (IGCS) statistics suggest that 65.31% of market participants are net-short EUR/USD, with the short-to-long ratio at 1.88 to 1. This is typically used as a contrarian indicator, implying thatthe tilt in tradersexposure points to an bullish trend bias.

In fact, traders are more net-short now than they were previously, with the skew 0.97 percent deeper compared with yesterday and 12.58 percent greater than a week ago. That may speak to strengthening upside pressure. However, positioning has been stretched to levels where bullish sentiment extremes have repeatedly occurred over the past year, so capitulation may well be on the horizon.

Euro vs US Dollar price chart, 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, Head APAC Strategist for DailyFX

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

News & Analysis at your fingertips.