Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Market update: euro sets stage for longest weekly losing streak since 1997

The euro is on course for longest losing streak since 1997; retail traders continue becoming increasingly bullish, while EUR/USD closes at lowest since March.

Source: Bloomberg

EUR/USD sentiment outlook: bearish

After a -0.8 percent drop against the US dollar over the past 24 hours, the euro is now on course for a ninth consecutive weekly loss. That would be the longest losing streak since 1997! Meanwhile, retail traders continue becoming more bullish on the single currency. This can be seen by looking at IG Client Sentiment (IGCS), which often functions as a contrarian indicator. With that in mind, is further pain in store for EUR/USD?

The IGCS gauge shows that about 71% of retail traders are net-long EUR/USD. Since most of them are biased to the upside, this hints that prices may continue falling down the road. Meanwhile, upside exposure has increased by 13.79% and 1.95% compared to yesterday and last week, respectively. With that in mind, this is offering a stronger bearish contrarian trading bias.

IG Client Sentiment chart

Source: TradingView

EUR/USD technical analysis

Taking a look at the daily chart below, EUR/USD has extended losses under the 200-day moving average. Now, prices have fallen to the May low of 1.0635, as well as closing at the lowest point since March. With that in mind, EUR/USD is thus facing a potential key turning point.

Still, even a bounce off support would not necessarily overturn the downside bias since July. The falling trendline from then is guiding prices lower. Clearing it would offer an increasingly bullish view. Otherwise, clearing lower exposes the March low of 1.0516.

Euro daily chart

Source: DailyFX

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.


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.

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.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.