EUR/USD: Negative technical bias as ECB keeps monetary policy unchanged
Latest CoT report shows the bias unchanged at majority short, retail bias an opposite heavy long.
EUR/USD Technical analysis, overview, strategies, and levels
Another week, another consecutive decline in EUR/USD’s price that took its price below the last of its main weekly moving averages, and kept its technical overview showing more negative bias on both the weekly, and more so on the daily where nearly all its main technical indicators are flashing red. In fundamental news, the focus was on the ECB’s (European Central Bank) decision last Thursday to keep monetary policy – and hence ongoing easing – unchanged as inflation rates “remain at their present or lower levels” until the inflation outlook improves “to a level sufficiently close to, but below 2%", a tougher task no doubt with oil prices plummeting and seeping into lower price indexes down the line should it persist. As for the recently launched strategic review, it’s likely to conclude at the end of the year and hence expect no significant changes between now and then so long as economic data and inflation remain suppressed. German IFO sentiment figures are up next.
IG client and CoT sentiment for EUR/USD
As for sentiment, retail bias has risen to heavy long levels at 66% as shorts get enticed into closing out, while the latest CoT (Commitment of Traders) figures regarding larger speculative traders shows no change in the bias at a majority short 56% as both euro long and short positioning increased, to the tune of 4,335 lots and 3,172 lots respectively.
EUR/USD Chart with retail and institutional sentiment
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