Last Time This Happened in EURUSD was 1 Year Ago

EURUSD sentiment has closed the day positive for the first time since April 2017. This, coupled with our Elliott Wave analysis is a longer-term bearish signal for EURUSD.

In April 2017, EURUSD was trading near 1.06. IG client sentiment then flipped from positive to negative and remained negative until Monday’s daily close as sentiment is currently sitting at +1.05. Sentiment is a contrarian tool so this flip to positive is actually a negative signal for the EURUSD exchange rate. In hindsight, sentiment flipped from positive to negative in April 2017 and we say EURUSD rally over 1500 pips. Will this flip in sentiment create a similar bearish trend? Time will tell. This flip does not mean that we blindly go out and sell EURUSD, but it does indicate the EURUSD trend may be shifting.

EURUSD Elliott Wave Analysis

Our bias for EURUSD has been bearish for a couple of months now with a small probe in the market according to our April 9 Elliott Wave analysis.

“If a trader is unwilling to wait for a more conservative entry at the 1.2153 break out level, then they could consider a short

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