EUR/USD: ECB likely to raise asset purchases
Technicals shelved in the face of fundamental forces with ECB today and NFP tomorrow.
EUR/USD Technical analysis, overview, strategies, and levels
It's a big day for the euro as the European Central Bank (ECB) is set to announce its monetary policy. Expectations are for rates to remain on hold, but where easing could increase sizably in an expansion of its current €750bn bond purchasing program Pandemic Emergency Purchase Programme – a portion of which they've already used. That means volatility may strike this pair's price with pivot points on both ends at risk of breaking, an atmosphere that will likely continue into tomorrow with USD getting volatile on Non-Farm Payrolls (NFP). Services PMIs (Purchasing Managers Index) were better than expected and its unemployment rate while rising was far below estimates. As for EUR/USD's price, it breached well past yesterday's 1st Resistance level to aid conformist breakout strategies in line with its bullish overview.
IG client* and CoT sentiment for EUR/USD
Going into today's event retail traders are majority short at 62%, near opposite CoT (Commitment of Traders) speculators holding a majority long 64% bias.
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.
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
