EURUSD maintains weekly gains. Bull’s eye on the 1.1000 zone. EURUSD is being pushed higher by the US dollar’s decline.

EURUSD optimizing on the Us dollar’s weakness

The markets are continuing to price in a closing of the gap in interest rates between the two main currencies.  Which is driving EURUSD ever higher due to the US dollar‘s weakness and the Euro’s continued strength. While the US may have stopped raising interest rates. The ECB is still on course to do so because of ongoing elevated inflation in the Euro Area. Looking further out, the market anticipates that the Federal Reserve will begin reducing interest rates in Sept. While the ECB is likely to remain on hold, further reducing the rate difference.

Likelihood of Interest Rates Activity

The EURUSD will be scrutinizing Today’s final US non-manufacturing PMI Data

We will receive the final US non-manufacturing PMI number later today. According to market expectations, March’s reading will drop from 55.1 to 54.5. Around 78% of the US GDP is produced by the service industry. The most recent US Jobs Report is published on Bank Holiday Friday in a market that will be quiet. The latest JOLTs report indicated job vacancies declined by more than anticipated to 9.931 million in February from a revised 10.563 million in January. This will increase attention in this report and have the potential to affect the US dollar.

Analysis of the EURUSD price: Potential for short-term additional gains

The impending long weekend is probably going to have an impact on turnover. As the euro versus the dollar is currently trading in a narrow range. The two currencies are returned in a higher channel and not far from the multi-month peak of 1.10330 set on Feb 2nd. Before the peak of March 31st, 2022, at 1.11855, there is not much resistance above this level.

RETAIL TRADERS ARE NET SHORT ON EURUSD

According to statistics from retail traders, 34.12% of speculators are net long, having a short-to-long ratio of 1.93 to 1. The percentage of traders who are net-long is up 1.24% from Wednesday and down 17.16% from the previous week. And the number of traders that are net short is up 1.28% from Tuesday and up 7.90% from the previous week.

Speculators’ sentiment as well as the reality that they are net short indicates that the EURUSD exchange rate may rise further. We have a stronger EURUSD-bullish contrary trading tilt as a result of the present mood and recent shifts, as traders have become more net-short than they were Tuesday over the past week.

Technical Summary

Technical Indicators