EURO,
EURUSD
, TECHNICAL ANALYSIS, RETAIL TRADER POSITIONING – IGCS UPDATE
- Euro is on course for an 11th consecutive weekly loss
- Retail traders maintaining increasingly bearish bets
- EURUSD on course to set new lows for this year?
The Euro dropped by -0.5% against the US Dollar on Monday, putting it on track for its 11th consecutive weekly loss. This matches the longest losing streak recorded in 1997. Retail traders have responded by increasing their upside exposure, as indicated by IG Client Sentiment (IGCS), a contrarian indicator. Given this, there is speculation on whether the Euro will continue its losing streak.
EURUSD
Sentiment Outlook – Bearish
The IGCS gauge indicates that 72% of retail traders are net-long EURUSD, suggesting a potential future price decrease as most traders have a bias towards the upside. Recent increases in upside exposure further support this bearish trading bias.
On the daily chart below,
EURUSD
broke under the 61.8% Fibonacci extension level at 1.0631. That has exposed the March low of 1.0516 as immediate support. Meanwhile, the falling trendline from July continues to guide the exchange rate lower.
As such, in the event of a turn higher, the trendline may hold as key resistance, maintaining a broadly bearish technical bias. Meanwhile, confirming a breakout under the March low. Establishing new lows for this year exposes the 100% level at 1.0436.
EURUSD
, TECHNICAL ANALYSIS, RETAIL TRADER POSITIONING – IGCS UPDATE - Euro is on course for an 11th consecutive weekly loss
- Retail traders maintaining increasingly bearish bets
- EURUSD on course to set new lows for this year?
The Euro dropped by -0.5% against the US Dollar on Monday, putting it on track for its 11th consecutive weekly loss. This matches the longest losing streak recorded in 1997. Retail traders have responded by increasing their upside exposure, as indicated by IG Client Sentiment (IGCS), a contrarian indicator. Given this, there is speculation on whether the Euro will continue its losing streak.
EURUSD
Sentiment Outlook – Bearish The IGCS gauge indicates that 72% of retail traders are net-long EURUSD, suggesting a potential future price decrease as most traders have a bias towards the upside. Recent increases in upside exposure further support this bearish trading bias.
On the daily chart below,
EURUSD
broke under the 61.8% Fibonacci extension level at 1.0631. That has exposed the March low of 1.0516 as immediate support. Meanwhile, the falling trendline from July continues to guide the exchange rate lower. As such, in the event of a turn higher, the trendline may hold as key resistance, maintaining a broadly bearish technical bias. Meanwhile, confirming a breakout under the March low. Establishing new lows for this year exposes the 100% level at 1.0436.
