EUR Non-Commercial Net Positions’ weekly net change announced over -28k last week while EURUSD test below 1.20. Since 2016, positions’ net change fell more than 20k 7 times and after 6 of them EURUSD rise in the next week. Is it a statistical anomaly or sign of a correction after a big fall is unknown but this signal has a good track record.
EURUSD closed last week above key support, 1.20 but under the bullish trend which started in May. For the bullish scenario to continue EURUSD must hold over 1.20 on daily closes and sit on the white trend line once more. Below 1.20 levels are dangerous for EURUSD bulls because of record-high net positions may cause a panic sell if the price falls rapidly below 1.20.