The EUR/USD is opening the week higher, after spiking as much as 90 pips higher in Fridays trading. Currently the pair is testing short term resistance near 1.1174. This area is depicted below as the R2 Camarilla pivot. The next line of major resistance for the pair is found at 1.1182. If price fails to breakout above either of these values, it would suggest that bullish momentum for the EUR/USD has at least temporarily been tempered. In the event price action remains under resistance, it opens the pair up to trade back towards S3 pivot support at 1.1132.
Traders watching for a bearish reversal in today’s trading should continue to monitor the S4 pivot, found at 1.1107. A move below this point of support opens the EUR/USD to then test the August 5th low at 1.1045. Bullish breakouts for the session may begin over 1.1205. In this scenario, traders should then look for the EUR/USD to test Friday’s high of 1.1221, before breaking out again towards higher highs.
EUR/USD 30 Minute
(Created using Marketscope 2.0 Charts)
The ratio of long to short positions for the EUR/USD stands at -1.52. This SSI (speculative sentiment index) reading shows that 60% of positioning on the EUR/USD is short. Typically, when read as a contrarian signal, this suggests that the EUR/USD may continue trading higher. In the event of a bullish breakout, traders should look for SSI to move to a negative extreme of -2.0 or greater. Alternatively if prices decline, SSI may neutralize and flip to a positive reading.
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