EUR/USD FULL ANALYSIS - JULY 02
Hi traders, here's an update on the EUR/USD pair. Please hit the "LIKE" button to support our free work. Thanks!
Please bear in mind that we don't enter any trade until all rules of our trading strategy are fulfilled.
TECHNICALS:
From a technical standpoint, the EUR/USD pair has been in a medium-term uptrend since May and has recently entered a consolidation phase, trading between 1.12 and 1.14.
The 38.2% Fib level keeps holding, and any positive news about the EC's PEPP could push the pair up.
The 1-hour chart shows a break above a falling trendline followed by a pullback, which could provide some near term support.
POSITIONING:
The latest CoT report showed a strong increase in the EUR bullish positioning, with all categories (except Asset managers) increasing their bullish bets. Open interest rose by 11.000 as well. On the other hand, the US dollar remained under selling pressure with a relatively bearish positioning.
INTEREST RATES:
2y yield spreads look somewhat neutral when compared to EUR/USD at the moment.
RISK SENTIMENT:
European, Asian and US stock indices are all up abd VIX is falling, signaling a risk-on environment and possibly further USD weakness. Today's better than expected US employment change numbers may also add to selling pressure in the USD.
Please bear in mind that we don't enter any trade until all rules of our trading strategy are fulfilled.
TECHNICALS:
From a technical standpoint, the EUR/USD pair has been in a medium-term uptrend since May and has recently entered a consolidation phase, trading between 1.12 and 1.14.
The 38.2% Fib level keeps holding, and any positive news about the EC's PEPP could push the pair up.
The 1-hour chart shows a break above a falling trendline followed by a pullback, which could provide some near term support.
POSITIONING:
The latest CoT report showed a strong increase in the EUR bullish positioning, with all categories (except Asset managers) increasing their bullish bets. Open interest rose by 11.000 as well. On the other hand, the US dollar remained under selling pressure with a relatively bearish positioning.
INTEREST RATES:
2y yield spreads look somewhat neutral when compared to EUR/USD at the moment.
RISK SENTIMENT:
European, Asian and US stock indices are all up abd VIX is falling, signaling a risk-on environment and possibly further USD weakness. Today's better than expected US employment change numbers may also add to selling pressure in the USD.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.