Hi traders, here's a quick overview of the EUR/USD pair.
TECHNICALS:
The EUR/USD pair had difficulties to break above the 1.14 level and entered into a correction phase, forming fresh Lower Lows and Lower Highs. The 1-hour chart suggests that a retest of 1.12 is possible, after which the pair could continue in the direction of the medium-term uptrend.
POSITIONING:
Positioning numbers show a strong increase in EUR bulls and an overall bullish bias on the currency in the last few weeks, while the US dollar remained a sell as investors cut their bullish positions.
INTEREST RATES:
Short-term yield divergences pointed at further weakness in the pair already at the 1.13 level. As the sell trade reached our profit target, we're looking for a buying opportunity at the moment. (Check our previous post: EUR/USD: Three signs of a 1.12 retest)
TECHNICALS:
The EUR/USD pair had difficulties to break above the 1.14 level and entered into a correction phase, forming fresh Lower Lows and Lower Highs. The 1-hour chart suggests that a retest of 1.12 is possible, after which the pair could continue in the direction of the medium-term uptrend.
POSITIONING:
Positioning numbers show a strong increase in EUR bulls and an overall bullish bias on the currency in the last few weeks, while the US dollar remained a sell as investors cut their bullish positions.
INTEREST RATES:
Short-term yield divergences pointed at further weakness in the pair already at the 1.13 level. As the sell trade reached our profit target, we're looking for a buying opportunity at the moment. (Check our previous post: EUR/USD: Three signs of a 1.12 retest)
