EUR/USD Update: This is the area to buy (FIST Analysis)
Hello traders, here comes an update on EUR/USD.
Fundamentals:
Fundamentals remain supportive for EURUSD as markets remain optimistic on US stimulus and positive numbers from the eurozone. German and French PMI numbers all beat expectations this Monday, as well as German PPI numbers and the ifo business climate index.
Intermarket:
2-year yield differentials between the US and Germany are neither bullish nor bearish at the moment.
Sentiment:
Hedge funds keep increasing their bullish positioning in EUR against the USD, according to the latest CoT report. This signals possible upward pressure in the pair, as exchange rates tend to move when big players join the market.
Net bullish positioning increased for the fourth consecutive week, reaching a 5-month high. However, there is still room to the upside until we see a 52-week extreme positioning in EUR.
EUR remains mostly mixed against other major currencies during the day, while the USD is the top-performer of the day.
Technicals:
Technicals show a strong uptrend on the daily chart and a bullish channel, while the 1-hour chart shows strong buying volume in the lower 1.21xx area.
This leads us to our plan for the pair: A retracement to the 1.2165 level could provide a buying opportunity as it aligns with the 50% retracement of the daily impulse move.
Please hit the "LIKE" button and follow if you find ideas like this useful. Thanks!
Fundamentals:
Fundamentals remain supportive for EURUSD as markets remain optimistic on US stimulus and positive numbers from the eurozone. German and French PMI numbers all beat expectations this Monday, as well as German PPI numbers and the ifo business climate index.
Intermarket:
2-year yield differentials between the US and Germany are neither bullish nor bearish at the moment.
Sentiment:
Hedge funds keep increasing their bullish positioning in EUR against the USD, according to the latest CoT report. This signals possible upward pressure in the pair, as exchange rates tend to move when big players join the market.
Net bullish positioning increased for the fourth consecutive week, reaching a 5-month high. However, there is still room to the upside until we see a 52-week extreme positioning in EUR.
EUR remains mostly mixed against other major currencies during the day, while the USD is the top-performer of the day.
Technicals:
Technicals show a strong uptrend on the daily chart and a bullish channel, while the 1-hour chart shows strong buying volume in the lower 1.21xx area.
This leads us to our plan for the pair: A retracement to the 1.2165 level could provide a buying opportunity as it aligns with the 50% retracement of the daily impulse move.
Please hit the "LIKE" button and follow if you find ideas like this useful. Thanks!
Trade closed manually:
Pair retraced at the expected area and closed with profit.
