EUR/USD: Positive technical bias builds ahead of fundamental events
US dollar retreats in the FX market, majority sell retail bias rises further into heavier short territory.
EUR/USD Technical analysis, overview, strategies, and levels
With the US dollar and safe haven currencies in relative retreat, the euro managed to finish higher and test conformist reversals on a lack of a retracement off of yesterday's 1st Resistance level, which coincided with a mid-term resistance level. All of its main technical indicators are now flashing green, though with fundamental items tomorrow with a central bank decision and the day after with a crucial summit, breakouts on key pivot points may be more likely with few traders willing to hold positions in the face of a significant fundamental move. ZEW sentiment figures were mixed with a slightly worse than expected (and worse than previous) figure for Germany, and today's items out of the US include Empire's manufacturing and more US Federal Reserve (Fed) speak following yesterday's 'accommodation' comments from the Fed’s Brainard.
IG client* and CoT sentiment for EUR/USD
Retail short bias has moved further into heavy short territory rising from 67% to 73%, opposite heavy long CoT (Commitment of Traders) speculators.
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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