EUR/USD: CoT long bias rises
As borders reopen, coronavirus cases rise.
EUR/USD Technical analysis, overview, strategies, and levels
The euro was a relative underperformer last week against the FX majors, testing its daily bull trend technical overview with Thursday's 1st Support level holding initially and aiding conformist buy-on-reversals before an eventual break on Friday. The fundamental mood hasn't helped, with the meeting between EU leaders failing to yield any results in terms of the proposal for a €750bn recovery fund, agreeing instead to meet in person next month to discuss both the fund as well as the €1.1tn 2021-27 budget. On the weekly chart, its price crossed and closed below its 100-week moving average, as more of its indicators shift away from bullish following a lack of upside momentum for two weeks running.
IG client* and CoT sentiment for EUR/USD
That's been good news for retail traders whose heavy short bias of 69% has dropped to 62%, while CoT (Commitment of Traders) speculators have raised their long bias to 73% on a massive reduction in euro shorts by 19,032 lots and an increase in longs by 2,451 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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