Stronger-than-expected retail sales from the U.S. saw EUR/USD break key support amid its most bearish session in seven weeks. This places it firmly back within range, where traders could look to fade into rallied below the 1.1265 area and target the 1.1100 lows.
However, given 1.1100 has so far provided solid support with three failed attempts to break it, counter-trend bulls could look to buy at the lows.
Large speculators have slightly reduced their net-short exposure, by a mere 759 contracts. However, over the past three weeks, 14.5k gross shorts have been closed. So there is an argument to be made that the tide could be turning for the euro whilst it remains above 1.1100. And we’ll be keeping a very close eye on Wednesday’s Fed meeting to see if they lay the groundwork for a July cut.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.