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EUR/USD Set for Another Month Of Gains As Speculators Increase Gross Longs

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Eno Eteng (MSTA) Investment writer, Certified Financial Technician
    Summary:
  • The EUR/USD is set for a 2nd consecutive month of gains as speculators increase their gross long positions for the 6th week in a row.

The Euro has made a solid start to the week, as bulls capitalize on the US dollar’s continued bearishness to push the EUR/USD higher by 0.32%. 

This move comes as the latest CFTC Positioning Report shows speculators adding more gross long positions on the Euro for the 6th week in a row. This lifts the net longs on the Euro to the highest levels seen since early March. 

With this report, the Euro finds itself gaining from a triple combo of weakness on the greenback, improving vaccine rollouts across the Eurozone, and the optimism surrounding EU economic recovery. 

As such, the EUR/USD looks set to close higher for the 2nd consecutive month. 

Technical Outlook for EUR/USD

The surge in the active daily candle came off a bounce on the 1.21792 support level. This bounce has put 1.22416 in the crosshairs. Above this level, 1.22768 and 1.23490 are additional upside targets. 

On the flip side, a rejection at the 1.22416 resistance could lead to a retest of 1.21792. This retest also challenges the lower boundary of the channel. A breakdown of this area brings 1.21487 into the picture, with 1.20890 and 1.20000 serving as additional support targets.

EUR/USD Daily Chart

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