EUR/USD Explosion or Trap?

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EUR Futures
Asset Managers: Strongly net long and continuously increasing since December 2024 → a clear sign of institutional confidence in the euro.
Leveraged Money: Also rising, moving from net short to net long → sentiment reversal even from speculators.

✅ Interpretation: Both institutional categories are bullish on the euro, suggesting potential upward support for EUR/USD.

USD Index Futures
Asset Managers: Decreasing since the end of February → reducing long exposure on the dollar.
Leveraged Money: Recovering from net short, but still uncertain → mixed sentiment.

⚠️ Interpretation: The dollar is structurally weakening. This reinforces the bullish bias on EUR/USD.

🧠 Technical Analysis – EUR/USD Weekly Chart

Current price: 1.13150, right in the middle of a weekly/monthly supply zone, marked by upper wicks → clear seller presence.

Price has made a strong rally from 1.03600, breaking through all intermediate supply zones.

RSI: Slightly declining after previously reaching overbought territory.

📌 Key levels:

Major support: 1.1000–1.1080

Structural resistance: 1.1350–1.1450 (current zone)

🧠 Technical Scenario:
If price holds above 1.1250, we could see an extension toward 1.1500.

If it breaks below 1.1200, a pullback toward 1.1080–1.1000 is likely.

✅ Trade Summary:
COT bias: Bullish EUR/USD → strong EUR, weakening USD

Technical: Watch price behavior in the 1.1350 zone → if rejection continues, expect a technical retracement before potential continuation.

🎯 Potential Setups:

Long on pullback toward 1.1080

Breakout long above 1.1450 → targeting 1.1600

Short-term short if bearish price action appears in the current zone

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