EURUSD Technical Analysis – Looking Lower

The EURUSD pair looks set for more losses against the US dollar on the foreign exchange market this week after last week’s better than expected US jobs report and the FED announced that they would be reducing QE purchases.

Looking at the soft weekly price close last week the EURUSD pair is likely to be heading lower. With daily and weekly prices are getting lower and lower,, so it is hard to turn bullish towards the EURUSD right now.

Additionally, the US dollar index had a breakout week, with the buck making strong gains against not only the euro, but also the British pound and the Canadian dollar.

Worryingly, the technicals over the medium-term highlight that the EURUSD could actually drop towards the 1.1400 level if we look at higher time frame analysis.

Bearish patterns surrounding the EURUSD pair at the moment, and we should also consider that the technical and fundamentals are perfectly aligning for more EURUSD weakness.

Sentiment is also worryingly high and is confirming the sell side is the is best towards the EURUSD from a contrarian point of view. Traders have not yet turned bearish, which is a big concern.

The ActivTrader Market Sentiment tool shows that some 72 percent of traders are bullish towards the EURUSD. This is a big increase from last week, but it is worth watching as bullish sentiment is what euro bears need to sink the pair even further.