Jump to content

EUR/USD Latest – Ranging Ahead of Next Week’s US Data and FOMC Minutes


Recommended Posts

EUR/USD PRICE, CHART, AND ANALYSIS

  • US data and FOMC minutes next week will drive EUR/USD.
  • Massive build of weekly trader EUR/USD net-short positions.

EUR/USD, AUD/USD and EUR/GBP slip on escalating tensions between Russia and  Ukraine | Levels to Watch | IG EN

Next week’s economic calendar is packed full of high importance US data and events which will add an extra dose of volatility to the US dollar. Wednesday’s FOMC minutes will give the market a clearer understanding of various members’ thoughts on the current state of the US economy and the path of future rate hikes, just one day before the first look at US Q2 GDP. On Thursday, the Fed’s preferred inflation reading PCE will highlight the growing pressures in the US. All of these events/releases are likely to add extra volatility to USD pairs.

EUR/USD Latest – Ranging Ahead of Next Week’s US Data and FOMC Minutes

For all market-moving economic releases and events, see the DailyFX Calendar

 

The US dollar (DXY) is consolidating its recent rally that saw the USD touch levels last seen in December 2002. With a lot of the expected US rate hikes already baked into the greenback, an extra driver/s will be needed if fresh highs are to be made. The downside for the DXY looks limited with 102.25 as the first point of support. Below here 100.94 comes into play.

US DOLLAR (DXY) DAILY PRICE CHART MAY 20, 2022

EUR/USD Latest – Ranging Ahead of Next Week’s US Data and FOMC Minutes

The daily EUR/USD chart shows the pair nearing a cluster of prior tops all the way up to 1.0655 and these are unlikely to be broken convincingly ahead of next week’s US data releases. The 106.36 level is a double bottom made in mid-March 2020 that sparked a rally all the way to the January 4, 2021 high of 1.2334. Volatility in EUR/USD is high, using the 14-day ATR, while the CCI indicator suggests that the market is entering overbought territory.

EUR/USD DAILY PRICE CHART – MAY 20, 2022

EUR/USD Latest – Ranging Ahead of Next Week’s US Data and FOMC Minutes

Retail trader data show 65.68% of traders are net-long with the ratio of traders long to short at 1.91 to 1. The number of traders net-long is 7.34% lower than yesterday and 18.00% lower from last week, while the number of traders net-short is 9.08% higher than yesterday and 46.27% 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current EUR/USD price trend may soon reverse higher despite the fact traders remain net-long.

image.png

What is your view on the EURO – bullish or bearish?

 

May 20, 2022 |  DailyFX
Nick Cawley, Strategist

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Recently, U.S. Senator Bill Hagerty from Tennessee spoke at the Bitcoin conference, stating his efforts to push for Bitcoin-supportive legislation to promote freedom and opportunity. This year, cryptocurrency has become a key battleground in the election campaigns. It remains to be seen whether future policies on cryptocurrency will improve.
    • The digital landscape is undergoing a profound transformation as attention, once a freely given commodity, is increasingly recognized as a valuable asset. Layer3 is at the forefront of this revolution, pioneering a new economy where attention can be owned, traded, and monetized   This innovative approach empowers individuals to monetize their engagement, providing unprecedented control over personal data. Simultaneously, advertisers benefit from transparent metrics that optimize campaign performance. Content creators are presented with diverse revenue avenues beyond traditional advertising, while the overall ecosystem experiences a more equitable distribution of value.   The implications of Layer3 extend across various sectors. Social media platforms, for instance, can leverage this technology to revolutionize user engagement and monetization strategies. Tokenomics play a crucial role in driving Layer3's economy, incentivizing participation and rewarding value creation. While challenges such as data privacy and market volatility exist, the potential benefits of Layer3 are immense   Anticipation is building as its native token $L3 is on Bitget Pre-market as users await its listing on the exchange. This milestone is expected to significantly increase the token's visibility and accessibility, potentially driving substantial growth and attracting new investors. As the countdown begins, the crypto community watches with keen interest, eager to see how Layer3 will perform in this new chapter.
    • I've been exploring the world of play-to-earn gaming recently, looking for something that's not just about endless grinding but actually offers a fun and rewarding experience. OGC really stood out to me because it combines gaming with a sense of community in a unique way. OGC isn't just a game; it's a platform where you can play, earn, and even help shape its future. You're not just a player; you're part of a community with a voice. The idea of earning crypto while playing games is exciting, but what makes OGC special is its focus on community involvement. Your feedback can directly influence the development of the game, which is a big deal. I've also heard that the OGC token is available for pre-market trading on Bitget. While I'm still getting to know the platform and its features, it's definitely something to keep an eye on. Has anyone else tried OGC? What has your experience been like? I'd love to hear your thoughts and any tips you might have.
×
×
  • Create New...
us