EUR/USD Trades to New 2017 Highs
Markets

EUR/USD Trades to New 2017 Highs

DailyFX.com -

Talking Points:

  • EUR/USD Trades to New 2017 Highs
  • Technically EUR/USD is in a short-term uptrend, despite trending down long term
  • Sentiment Figures remain off of extremes, reading at -1.70

The EUR/USD has started Mondays trading pushing to new 2017 highs at 1.0754. With today's rally, the EUR/USD has now risen as much as 414 pips from the current 2017 low at 1.0340. Technically the pair remains bullish in the short term, as the EUR/USD remains trading above its 10 day EMA (exponential moving average). This line is currently acting as short-term support for the pair and found at 1.0647.

On a longer-term basis, the EUR/USD is still arguably in a downtrend as the pair trades below its 200-day MVA (Simple Moving Average). While the 200-day average at 1.1022 remains a critical point of resistance, traders will next look for the EUR/USD to clear the December 8 high at 1.0873. Failure to trade beyond this point would help classify this short-term bull run as a retracement in an otherwise downtrend.

(Created Using TradingView Charts)

Lastly, Sentiment values for the EUR/USD remain off of extremes, with SSI now reading at -1.70. This reading places 63% of positioning short the EUR/USD, with 37% short. With more positioning short than long, this typically reads as a bullish signal. If the EUR/USD continues to rise, traders may expect sentiment values to continue to decrease. It should be noted that a bullish SSI total of -2.0 would be considered extreme, this would represent twice the positioning short relative to long. In the event that the EUR/USD declines, traders may reasonably expect SSI readings to level out at more neutral values.

--- Written by Walker, Analyst for DailyFX.com

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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