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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Technical cheat sheet: how to trade the euro against a cautious USD

Revisiting EUR/USD, in our latest TCS, as prices hover near February's levels with unchanged outlooks and mixed signals. Recent sentiment shifts among traders and speculators highlight the trading intrigue

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In this week’s Technical cheat sheet, we’re diving into the EUR/USD currency pair, which has seen only a slight price fluctuation from 107.80 to 107.60 since mid-February. It appears the market is taking a breather, and we’re noting an environment of cautious consolidation.

Market sentiment & positioning

Current sentiment among retail IG clients shows a mixed reaction, with a significant shift from a predominantly bullish stance to a more balanced or even bearish outlook as per recent Commitments of Traders (CoT) data. This shift from a majority buying to a majority short position could point to changing perceptions and a more guarded approach among traders.

Technical perspective

From a technical standpoint, both weekly and daily analyses suggest a tilted yet neutral stance. The pair has been caught in relatively tight trading ranges, making it crucial to watch for any breakouts or breakdowns that could signal a new direction. Yet, the potential for short-lived signals means that vigilance is vital. Even the smallest cues in price movement or changes in volume could be the precursor to more significant shifts.

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