EUR/USD: CoT long bias rises
ECB’s Lagarde to testify today following last week’s ECB decision to increase purchases.
EUR/USD Technical analysis, overview, strategies, and levels
Despite Friday's retracement and threats of auto tariffs, it was a strong week for EUR/USD's price which crossed and closed above its 100-week moving average. Buy breakout strategies outperformed on both Weekly and Daily and in line with its volatile technical overview following the ECB's (European Central Bank) decision to increase asset purchases by €600bn. The US dollar was suffering from general decline (even after Non-Farm Payrolls it bested the euro but was a relative underperformer in the FX market), and should that trend continue and the pair's price could break out of its long-term bear trend channel. This week's US Federal Reserve decision could make USD pairs volatile on Wednesday, the absence of which they'll have to contend with conflicting technicals. The ECB's Lagarde will be testifying today.
IG client* and CoT sentiment for EUR/USD
In sentiment, retail bias is still heavy short, exact opposite that of CoT (Commitment of Traders) speculators who have reduced shorts by 6,640 lots and longs by only 622 lots.
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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