Technical cheat sheet: how to trade the euro against a cautious USD
Revisiting EUR/USD, in our latest TCS, as prices hover near February's levels with unchanged outlooks and mixed signals. Recent sentiment shifts among traders and speculators highlight the trading intrigue
In this week’s Technical cheat sheet, we’re diving into the EUR/USD currency pair, which has seen only a slight price fluctuation from 107.80 to 107.60 since mid-February. It appears the market is taking a breather, and we’re noting an environment of cautious consolidation.
Market sentiment & positioning
Current sentiment among retail IG clients shows a mixed reaction, with a significant shift from a predominantly bullish stance to a more balanced or even bearish outlook as per recent Commitments of Traders (CoT) data. This shift from a majority buying to a majority short position could point to changing perceptions and a more guarded approach among traders.
Technical perspective
From a technical standpoint, both weekly and daily analyses suggest a tilted yet neutral stance. The pair has been caught in relatively tight trading ranges, making it crucial to watch for any breakouts or breakdowns that could signal a new direction. Yet, the potential for short-lived signals means that vigilance is vital. Even the smallest cues in price movement or changes in volume could be the precursor to more significant shifts.
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