The daily EUR/USD chart remains weak despite the 100 pip bounce back over the last few days. All three simple moving averages are negative with the 20-/50-day sma cross at the end of September accelerating the move lower. The pair are currently back above the short-dated sma, which may provide some support, but a move back below would suggest that the recent 1.1525 low would come under pressure again.
If we look at the weekly EUR/USD chart we can see that the pair are now in a range defined by the 50% and 38.2% Fibonacci retracement levels produced by the January 2017 – February 2018 22 big figure rally. This zone looks set to hold leaving 1.1710 as resistance to any further push higher.
The US Dollar has started to pull back, and this continued an October that’s thus far been filled with mean reversion in the Greenback, even with the prevailing bullish bias.
The currency did technically push up to a fresh yearly high last week, but similar to what had happened in late-September, buying pressure dried up around 94.50 and prices have fallen back into support. From the Daily chart or longer-term, this could be enough for that pullback to allow for bullish continuation. On the below chart, we can see prices pulling back to support at prior resistance, taken from the ascending triangle formation in the US Dollar that had built ahead of the Q4 open.
From a shorter-term look, there could be some deeper retracement potential here, noted by the upper wicks on the prior and current four-hour candle, both of which have printed inside of prior short-term support, plotted around 93.83. This can keep the door open for a deeper move within the longer-term support zone; and perhaps even down towards the 93.20 area.
Retail trader data show 63.39% of traders are net-long with the ratio of traders long to short at 1.73 to 1. The number of traders net-long is 2.03% higher than yesterday and 1.99% lower from last week, while the number of traders net-short is 2.08% higher than yesterday and 7.44% lower from last week.
If we look at the weekly EUR/USD chart we can see that the pair are now in a range defined by the 50% and 38.2% Fibonacci retracement levels produced by the January 2017 – February 2018 22 big figure rally. This zone looks set to hold leaving 1.1710 as resistance to any further push higher.
The US Dollar has started to pull back, and this continued an October that’s thus far been filled with mean reversion in the Greenback, even with the prevailing bullish bias.
The currency did technically push up to a fresh yearly high last week, but similar to what had happened in late-September, buying pressure dried up around 94.50 and prices have fallen back into support. From the Daily chart or longer-term, this could be enough for that pullback to allow for bullish continuation. On the below chart, we can see prices pulling back to support at prior resistance, taken from the ascending triangle formation in the US Dollar that had built ahead of the Q4 open.
From a shorter-term look, there could be some deeper retracement potential here, noted by the upper wicks on the prior and current four-hour candle, both of which have printed inside of prior short-term support, plotted around 93.83. This can keep the door open for a deeper move within the longer-term support zone; and perhaps even down towards the 93.20 area.
Retail trader data show 63.39% of traders are net-long with the ratio of traders long to short at 1.73 to 1. The number of traders net-long is 2.03% higher than yesterday and 1.99% lower from last week, while the number of traders net-short is 2.08% higher than yesterday and 7.44% lower from last week.