EUR/USD is sidelined near 1.1775 ahead of the London open. A pullback looks likely with sentiment around the US dollar at bearish extremes. EU’s digital nationalism may add to bearish pressures around the euro. EUR/USD may face some selling pressure this week as bearish sentiment on the US dollar has reached extremes at a time when the currency pair’s technical indicators are signaling overbought conditions. The US Commodity Futures Trading Commission data released on Friday showed the net bearish bets on the greenback rose for the fourth straight week to $24.27 billion – the highest since April 2018 – in the week ended July 28. US dollar net shorts soar to highest in nine years Such extreme market positioning is usually considered as a contrarian indicator by sentiment traders, the logic being that sentiment reaches extremes when investors are fully bullish/bearish in the market. Hence, the pair looks vulnerable to a pullback – more so, as widely-tracked indicators like slow stochastic and relative strength index are indicating that the rally is overdone. Concerns that European Union’s digital protectionism may anger Washington and Beijing could also add to bearish pressures around the single currency. France recently enacted Gafa tax (Google, Amazon, Facebook, and Apple) to strip revenue from the US digital platforms and advertisers and similar taxes are being prepared by Austria, the Czech Republic, Italy, Spain, and on an EU-wide basis, according to Financial Times. That said, the pair is unlikely to suffer big losses as the dollar-bearish factors that fueled the recent near-90 degree rally from 1.13 to 1.19 are still valid. Notably, the US Congress remains in a deadlock on how to extend a weekly boost to federal unemployment benefits that ended on Friday. EUR/USD is currently trading largely unchanged on the day near 1.1774, having hit a low of 1.1740 during the Asian trading hours. Apart from sentiment and technical indicators, trades may take cues from the US ISM Manufacturing data, scheduled for release at 14:00 GMT. The final German and Eurozone manufacturing PMI numbers for July may fail to move the needle on the EUR pairs unless they carry a significant upward or downward revision to preliminary figures released a few days ago. EUR/USD Price Analysis: Eyes pullback after failure to beat macro trendline hurdle Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Gold Price Analysis: XAU/USD bulls aim for $2,000 despite intermediate pullbacks – Confluence Detector FX Street 3 years EUR/USD is sidelined near 1.1775 ahead of the London open. A pullback looks likely with sentiment around the US dollar at bearish extremes. EU's digital nationalism may add to bearish pressures around the euro. EUR/USD may face some selling pressure this week as bearish sentiment on the US dollar has reached extremes at a time when the currency pair’s technical indicators are signaling overbought conditions. The US Commodity Futures Trading Commission data released on Friday showed the net bearish bets on the greenback rose for the fourth straight week to $24.27 billion – the highest since April 2018 – in… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.