EUR/USD bias remains bullish, but stays vigilant on second wave concerns
EUR/USD remains skewed to the upside, but coronavirus concerns remain in focus.
![EUR/USD vigilant](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_eurusd_eur_usd_euro_dollar.jpg/jcr:content/renditions/original-size.webp)
EUR/USD analysis and news
- A little less uncertainty for the euro
- IG sentiment signals are bullish for EUR/USD
A little less uncertainty for the euro
Yesterday, German lawmakers had voted in favour of the European Central Bank's (ECB’s) purchase program, therefore putting an end to the legal stand off between the German constitutional court and the ECB.
As such, with the euro facing a little less uncertainty, dips in the currency are likely to find support. That said, caution is a must given the concerns of a second wave of Covid-19 cases hitting the southern states of the US.
With today’s session likely to be a tepid affair amid the US market holiday, price action in EUR/USD is likely to remain somewhat muted as markets lack direction and thus hold its $1.12-$1.13 range. Nonetheless, market attention will be placed on the latest Covid-19 case figures in the US.
IG sentiment signals are bullish for EUR/USD
Retail trader data shows 41.44% of traders are net long with the ratio of traders short to long at 1.41 to one. The number of traders net long is 1.03% higher than yesterday and 1.61% lower from last week, while the number of traders net short is 4.42% lower than yesterday and 7.32% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net short suggests EUR/USD prices may continue to rise.
Yet traders are less net short than yesterday and compared with last week. Recent changes in sentiment warn that the current EUR/USD price trend may soon reverse lower despite the fact traders remain net short.
![EUR/USD client positioning](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/03.07EUR.USD.png)
EUR/USD technical outlook
EUR/USD had failed break above resistance situated at $1.1293, which marks the 76.4% Fibonacci retracement of the $1.1497-$1.0635 sell off.
That said, the pair remains biased to the upside with dips finding support from $1.1180-$1.1200. Below here would negate the bullish bias. On the topside, bulls will look a make a breach the 76.4%, which could pave the way for a test of the descending trendline from the 2020 peak.
EUR/USD price chart: daily time frame
![EUR/USD daily](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/03.07.2.eur.usd.png)
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Forex-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.