EURUSD Technical Analysis – Sell any rallies back to 1.1500

The EURUSD pair is looking very bearish against the US dollar on the foreign exchange market at the start of the week after the single currency performed its lowest weekly and daily price close in over a year.

As things stand the EURUSD pair looks primed for more heavy losses this week, and with US retail sales expected to outperform this week, the fundamentals also look good for the buck.

Traders should also consider that European Central Bank President Christine Lagarde is also set to speak this week, with most analysts expecting the ECB President Lagarde to repeat the dovish rhetoric from this month’s policy meeting.

Selling rallies back towards the 1.1500 level looks to be a particularly attractive strategy this week, in anticipation of further weakness. It is particularly likely that the 1.1500 resistance zone will be important this week.

In terms of technical resistance, the 1.1500 and 1.1520 levels are the key price zones to watch. These could be ideal sell zone to target much lower levels over the medium-term.

Sentiment is still worryingly high and is confirming the remains on the sell side is probably the best strategy for the EURUSD as fading retail sentiment during trends has proved to be a profitable strategy.

The ActivTrader Market Sentiment tool shows that some 72 percent of traders are bullish towards the EURUSD. This sentiment metric has remained unchanged for over a week now.