EURUSD down long

3 mar 2024

Today’s release did little to shift interest rate expectations. Markets continue to forecast around 90 basis points of cuts this year – three or four 25bp cuts – with the June 6th meeting seen as the most likely starting point. A cut at this meeting would mean the ECB being the first major central bank to cut rates, leaving the Euro at risk of falling further.



The daily EUR/USD chart shows the pair testing 1.0800 again, with the pair flashing a short-term negative signal as it opens and trades back below the 200-day simple moving average. A break below 1.0800 leaves prior support around 1.0787 vulnerable, along with the last simple moving average at 1.0788. Below here the February 14th multi-month low print at 1.0695 the next target. If the pair can reclaim the 200-dsma at 1.0828, then the 1.0866/1.0870 area comes back into play.



Retail trader data shows 54.99% of traders are net-long with the ratio of traders long to short at 1.22 to 1.The number of traders net-long is 10.29% higher than yesterday and 7.10% higher than last week, while the number of traders net-short is 13.68% lower than yesterday and 6.70% lower than last week.

EUR/USD Weekly Forecast: Euro gains for second straight week as traders reassess Fed, ECB rate cut bets confirm signal