EURUSD Technical Analysis – March 17, 2021

The EUR/USD nicknamed ‘Fiber’ is the world’s most traded currency pair in the foreign exchange market commanding about 23% of FX transactions in 2016. The two currencies represent the two largest economies in the world, the United State’s Economy and the European Union.

The pair is currently trading weekly low of (1.1885) as the European Central Bank (ECB) hastens the pace of the pandemic emergency purchase programme (PPEP). Chances are that the interest rate decision by the Federal Reserve, which is due today, will sustain the pressure on the popular currency pair.

Statistical information from IG Client Sentiment report also shows that a whopping 45.55% of traders are currently net-long While 54.45% of traders are net-short. The current decline in net-long positions comes as the fiber (EURUSD) trades fresh weekly low around (1.1885). Consequently, the jump currently seen in net-short interest has generated a flip in retail sentiment. Interestingly 53.21% of traders decided to net-long the pair over the last one week.

As prices drop from the January high of 1.2350, it is fair to say that the pair is undergoing correction rather than a change in bearing as visibly spotted in the broader trend spectrum. As the days go by, it is expected that the EURUSD may retest the 1.1834 mark as the pair continues it’s rally downwards. Will the pending fundamental release give the necessary impetus needed to drive the EURUSD? This, we shall find out as we patiently await the important news release coming up in course of the day. Remember to trade responsibly.