Euro bets rise as Dollar sinks to new lows

Euro bets rise as Dollar sinks to new lows

Euro-bets-rise

EUR/USD hovers around multi-year trend line resistance and 23.6 fib (1) level taken from July 2008 highs and the December 2016 lows. Over the past couple of months, the US Dollar (USD) has taken a beating from its peers and continues to get destroyed as we head into this week’s session.

According to the latest Commitment of Traders (COT) data, large currency speculators increased their bearish net positions in the US Dollar Index, totalling a net position of -5,793 contracts. This was a weekly change of -754 contracts from the previous week. Small speculators also raised their bearish exposure in the US Dollar for a second straight week. Overall Euro currency positions jumped this week by more than +14,000 contracts. This was the third week that bullish bets soared reaching a total of +26,092 contracts over the past three weeks. 

EUR/USD Bulls will be looking to overcome this critical resistance hurdle (1) and start heading into the mid 120s as a first target of interest to watch out for. However, if the bears manage to defend this resistance zone, look for a pullback to low 115s (11510.9) over the coming days/week.