EUR/USD: European Commission’s proposal sends euro higher
Euro outperforms in the FX market, even if approval and application will occur later.
EUR/USD Technical analysis, overview, strategies, and levels
It was another consecutive day of strength for EUR/USD's price, with the euro an outperformer in the FX market and briefly taking its price above its 200-day moving average. Reversal strategies outperformed though, with a retracement off of yesterday's 1st Resistance level. The positive movement for the euro followed the European Commission's proposal of a €750bn recovery fund, €500bn of which would be given to EU countries as grants and the remaining €250bn available as loans. If approved, it won't be released until the start of next year. Elsewhere, the ECB's (European Central Bank) Lagarde said that the economy could face more 'medium to severe scenarios' and hence a percentage fall in GDP (Gross Domestic Product) that could be in the double digits. The central bank will meet next week. As for today, Eurozone data is light with a string of items tomorrow, while out of the US we get preliminary GDP.
IG client* and CoT sentiment for EUR/USD
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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