EUR / USD analysis:
- A safe dollar complaint hurts Euro, will the ECB remain extremely strong after the ECB meeting?
- The dollar is getting longer EUR / USD analysis of breakage or rebound in the case of long-term trend support
- Opposite IG customer mood the figure has not yet been decided
Relatively dovish ECB and US dollar Safe Haven appeal EUR / USD lower
The US dollar – rose early against the counterparts in the London session, and in the Netherlands in particular EUR / USD. Markets have expressed doubts about the pace of economic recovery as the euro area contracted during the year SKT during the last two consecutive quarters.
Recent changes to the program ECBThe 2% inflation target, together with the permitted overruns, allows the ECB’s oversupply to be further strengthened. This is happening at a time when members of other central banks – mainly the Fed and the BoE – have already raised the issue of narrowing in one way or another, fueling expectations of future interest rate rises in these locations. However, the ECB remains committed to creating an environment conducive to economic recovery and warns against tightening too early.
For all data release and events in the market, see DailyFX economic calendar
Long-term Trendline support in focus
The daily chart shows the recent price action as it temporarily broke down the long-term one trend line will operate as a grant from November 2020.
Bears monitor the break and keep long and short-term trends below, as the merger area is reliable support zone. The level of support is at its lowest level in April (1.1700) and then at around 50% at the Fib level (taken from the highest level in 2018 to the lowest in March 2020) to 1.1600.
However, the emergence of a positive discrepancy RSI presents a possible reversal here. The bulls follow the rebound of a long-term trend line, followed by an upward momentum. Resistance arrives recently at a lower high of 1.1880, then 1.1940 before psychological level From 1,2000.
EUR /USD Daily Chart
The chart was compiled by Richard Snow, IG
Trade education: Look for pricing actions that may indicate that a potential rebound is imminent. Earlier inflection points were marked with bear swallowing, a bullish neelab and Dawn star candlestick pattern. You can find out more about the compositions of these and other candlesticks through our comprehensive information education library.
IG customer opinion is mixed, despite the long network positioning
- EUR / USD: Retailer data show 56.13% of traders are net long long and short traders with a ratio of 1.28: 1.
- We usually have a conflicting opinion in the crowdand the fact that traders are net long suggests EUR / USD prices may continue to decline.
- The number of net long traders is 2.88% higher than yesterday and 13.41% higher than last week, while the number of net short traders is 3.20% yesterday and 9.31% lower than last week.
- Positioning is less long than yesterday, but more long than last week. The combination of the current mood and recent changes gives us even more mixed EUR / USD trading principle.
– Written by Richard Snow on DailyFX.com
Get in touch and follow Richard on Twitter: @RichardSnowFX