EUR/USD: A week of retracement as European currencies underperform in the FX market
Attention shifts to the US Federal Reserve this week to see if it’ll reduce rates by 0.25%.
The latest in EUR/USD:
Amongst the FX majors, European currencies underperformed last week, and where the euro’s real weakness occurred after last Thursday’s European Central Bank (ECB) meeting where its president Draghi – in his final meeting – left on a more pessimistic note and confirming the start of asset purchases set to begin this Friday, where digitally created euros will be pumped into the system buying up government bonds, and as a result likely keep the euro under pressure.
EUR/USD Technical analysis, overview, strategies, and levels
From a technical standpoint, the weekly bear trend channel that was breached the week before is largely holding amidst the main technical indicators that are mostly mixed.
| Current Technical Overview | Consolidation - Negative Bias |
| Technical Overview Conformist Strategies | Sell 1st Resistance At/before Price, Buy 1st Support After Reversal |
| Technical Overview Contrarian Strategies | Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 1.1346 |
| 2nd Resistance | 1.1293 |
| S/L for 1st Resistance | 1.1240 |
| 1st Resistance | 1.1186 |
| Relative Starting Point | 1.1080 |
| 1st Support | 1.0974 |
| S/L for 1st Support | 1.0920 |
| 2nd Support | 1.0867 |
| S/L for 2nd Support | 1.0814 |
IG client and CoT sentiment for EUR/USD
In sentiment, retail bias is now close to the middle with short positions taking profit, and Commitment of Trader (CoT) bias is moving closer to the middle as well on an increase in euro longs by 13,680 lots and a simultaneous reduction in shorts by 10,424 lots.
EUR/USD Chart with retail and institutional sentiment
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