EUR/USD: Germany and France propose a €500bn recovery fund
Retail bias shifts to majority short, longs take profit and fresh shorts initiate.
EUR/USD Technical analysis, overview, strategies, and levels
With the US dollar in significant retreat yesterday, EUR/USD's price made a move to reach yesterday's Weekly 1st Resistance level before partially retracing, closing above its 50-day moving average in the process. News that France and Germany proposed a €500bn recovery fund to be distributed to EU countries worst affected by the coronavirus certainly helps even as countries reopen from the lockdown, but it'll still need approval from other EU member countries. We've got ZEW sentiment figures today expected to show an improvement, and out of the US the Federal Reserve's (Fed) Powell will be testifying before the Senate.
IG client* and CoT sentiment for EUR/USD
In sentiment, the surge higher has seen swift profit-taking from retail longs and fresh shorts initiate, shifting the bias from a majority long 62% to a now majority short 56%.
EUR/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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