EUR/USD: Greenback retreats in the FX market
Technicals turn more bullish, retail bias rises into heavy short territory.
EUR/USD Technical analysis, overview, strategies, and levels
While its price retraced off the highs towards the close a couple of times, it gave conformist sell-on-reversal strategies less leeway and eventually failing as the euro bested the greenback, with the US dollar weakening this morning generally and against the yuan back below the level of 7 that's closely watched by traders and investors alike. From a technical standpoint, early signs of an initializing bull trend as its price remains above all its main moving averages and with a trending ADX (Average Directional Movement Index) that may entice contrarian breakout strategies over conformist reversals. The economic calendar is light for the Eurozone with German trade data, while out of the US we get unemployment claims expected to remain above a million.
IG client* and CoT sentiment for EUR/USD
As for sentiment, retail bias has risen into heavy short territory at 65%, rising from 58% yesterday.
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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