EUR/USD: Negative technical bias ahead of fundamental data
Preliminary GDP figures for Germany will be closely watched to see if the country’s economy will slip into a recession.
EUR/USD Technical analysis, overview, strategies, and levels
There were two key items in the financial markets grabbing the attention yesterday and both were out of the US, with CPI (Consumer Price Index) figures which came in at a better than previous 0.2%, and the Federal Reserve (Fed) Chairman Powell's testimony whereby he mentioned the usual and expected talk of an economy that while is exposed to certain risks, remains in a good place. Part two of that testimony will be tonight, though there will be plenty of Eurozone items prior that'll be in focus including preliminary GDP (Gross Domestic Product) as well as for Germany which will need to avoid contraction else would officially be in a recession. This follows worse than expected data out of Asia this morning. From a technical standpoint, the euro’s fresh lows yesterday weren’t enough to entice a sell breakout, but the overview remains bearish.
IG client and CoT sentiment for EUR/USD
As for sentiment, retail long bias has risen to 62% as more shorts get enticed into taking profit.
EUR/USD Chart with retail and institutional sentiment
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