EUR/USD: ECB confirms monetary easing, attention shifts to today’s preliminary PMIs
Euro manages to finish higher for the week against a weakened greenback, weekly bear trend channel still holds.
EUR/USD Technical analysis, overview, strategies, and levels
The key highlight for the euro last week was this past Thursday’s ECB (European Central Bank) announcement whereby its new president Lagarde opted to keep monetary policy unchanged and accommodative for ‘a prolonged period of time’, and open to more stimulus. CPI (Consumer Price Index) figures will be of greater importance given the central bank’s 2% inflation target, though for now preliminary PMIs (Purchasing Managers Index) released today will have to suffice and – ideally – try to avoid what has been ongoing contraction in the manufacturing sector. From a technical standpoint, the reversal strategy panned out on the weekly level, as the pair’s weekly bear trend channel barely holds, and its price crossed but failed to close above its 50-week moving average.
IG client and CoT sentiment for EUR/USD
In sentiment, retail bias has shifted from last week’s slight long 51% to a slight majority short 54% at the start of this week, while CoT (Commitment of Traders) bias is unchanged at a short 59% on little change in euro long and short positioning.
EUR/USD Chart with retail and institutional sentiment
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