EUR/USD: Fresh lows for the euro continues to test majority long positions
Technical overview remains bearish, fundamentals continue to disappoint.
EUR/USD Technical analysis, overview, strategies, and levels
ZEW figures were a disappointment yesterday, falling well below expectations with Germany's dropping from 26.7 to 8.7, and not that far off from reversing back into contraction after only three months of positive figures. Out of the US, Empire's manufacturing index showed a better than expected reading, and focus now shifts to tonight's FOMC minutes, preceded by plenty of speeches from its members. EUR/USD’s price was in for a volatile session yesterday with a break towards yesterday's 2nd Support level and keeping its current bear trend technical overview intact.
IG client* and CoT sentiment for EUR/USD
As for sentiment, retail bias is unchanged at a heavy long 76% despite the drop, suggestive of a lack of increased averaging-in at this stage from buyers who have utilized a fair share of their financial firepower, as well as short initiation as some traders hurt on range-trading prior attempt a shift towards trend-trading the decline.
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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