EUR/USD: European currencies in retreat as mixed Brexit vote results
Risk-taking expected to be relatively limiting prior to tomorrow’s ECB monetary policy announcement.
The latest in EUR/USD:
A dearth of Eurozone data and ahead of limited risk-taking with the European Central Bank's (ECB) monetary policy decision tomorrow meant focus remained on the next steps in the Brexit story, as well as where the US dollar would land following what has been significant greenback retreat. Thus far, Brexit optimism was what carried European currencies higher last week (pound, euro, and Swiss franc), but yesterday’s mixed vote (see GBP/USD commentary for more details) meant that the three currencies underperformed amongst the FX majors, and where the pound bore the brunt of the losses.
EUR/USD Technical analysis, overview, strategies, and levels
From a technical standpoint, most of its main indicators remain bullish even as its price crossed back below its 100-day moving average and with a trending Average Directional Index (ADX), but with the gains on the back of fundamental moves, technicals hold far less relevance, and where any Brexit updates can entice breakout strategies over contrarian reversal/fading ones.
| Current Technical Overview | Consolidation - Positive Bias |
| Technical Overview Conformist Strategies | Sell 1st Resistance After Reversal, Buy 1st Support At/Before Price |
| Technical Overview Contrarian Strategies | Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 1.1229 |
| 2nd Resistance | 1.1208 |
| S/L for 1st Resistance | 1.1188 |
| 1st Resistance | 1.1168 |
| Relative Starting Point | 1.1128 |
| 1st Support | 1.1088 |
| S/L for 1st Support | 1.1068 |
| 2nd Support | 1.1048 |
| S/L for 2nd Support | 1.1027 |
IG client and CoT sentiment for EUR/USD
As for sentiment, retail bias has dropped slightly to a majority short 59% from yesterday’s 60% but still stands near Commitment of Trader (CoT) bias of 60%.
EUR/USD Chart with retail and institutional sentiment
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