(MENAFN- DailyFX) Eurotrading in a tight range just above weekly downtrend support- shorts at risk above 1.0990 Check out our 2019 projections in ourFree DailyFX EUR/USD Trading Forecasts Join Michael for Live Weekly Strategy Webinars onMondays at 12:30GMT
Eurosnapped a two-week winning streak with price set to close down more than 0.6% against theUS Dollaron Friday. Despite the recent losses,EUR/USDcontinues to hold just above broader downtrend support and heading into next week the focus is on a break of the near-term range carved out this week. Here These are the updated targets and invalidation levels that matter on theEUR / USDweekly price chart.Review my latestWeekly Strategy Webinarfor an in-depth breakdown of thisAussieprice setup and more.
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Euro Price Chart – EUR/USD Weekly![Weekly Euro Price Chart]()
Chart Prepared byMichael Boutros , Technical Strategist;EUR/USD on Tradingview
Notes:In my lastEuro Weekly Price Outlookwe noted that EUR/ USDhad rebounded off downtrend support while noting that IF price, 'has indeed turned the corner, look for exhaustion pullbacks to be limited to the monthly open.' Euro has been testing monthly open support for the past few days with price trading just above 1.0990 ahead of the New York close on Friday.
Key resistance remains at 1.1107 where the May swing low converges on the Junetrendline- a breach / close above this threshold is needed to suggest a more significant low was registered this month with such a scenario targeting initial topside objectives at the 61.8%retracementof the 2017 advance at 1.1186- look for a bigger reaction there IF reached. Initial support rests at with the 1.382% parallel (currently ~1.0990) – a break / close below would be needed to mark resumption of the broader downtrend targeting 1.0814/54.
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Bottom line:Euro is ranging just above long-term downtrend support. From a trading standpoint, we remain on the lookout for possible exhaustion lows while above the yearly low close at 1.0988 with a breach above the June slope needed to fuel the next leg higher in price. Weakness below this threshold could see further accelerated losses towards the 1.08-handle – stay nimble her into the close of the month. Review my latestEuro Price Outlookfor a closer look at the near-term EUR/USD technical trading levels.
Euro Sentiment – EUR/USD Price Chart
![Euro Client Sentiment Chart]()
A summary ofIG Client Sentimentshows traders are net-long EUR/USD- the ratio stands at +1.47 (59.5% of traders are long) – weak bearishreading Traders have remained net-long since July 1st; price has moved 2.1% lower since then Long positions are0.7% higher than yesterday and 5.1% higher from last week Short positions are0.9% lower than yesterday and 0.4% higher from last week We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/USD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger EUR/USD-bearish contrarian trading bias from a sentiment standpoint.
See how shifts in Euro retail positioning are impacting trend-Learn more about sentiment!
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--- Written byMichael Boutros , Technical Currency Strategist with DailyFX
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