EUR/USD: Positive technical bias builds thanks to USD plummet
Majority short retail bias surges as pair’s price approaches short-term resistance level.
EUR/USD Technical analysis, overview, strategies, and levels
With the US dollar suffering yesterday and underperforming against the remaining FX majors, EUR/USD's price has been gaining more positive technical bias with its price crossing and closing above its 100-day moving average, and not far off its 200-day MA which coincides with a short-term resistance level. Yesterday's ECB (European Central Bank) Financial Stability Review showed financial vulnerabilities rising and debt sustainability a bigger factor given total eurozone government debt levels could cross 100% of GDP (Gross Domestic Product) this year. The European Commission is expected to release details of its rescue fund today, and the ECB's Lagarde will be speaking.
IG client* and CoT sentiment for EUR/USD
In sentiment, retail short bias has surged to 64%, while last Friday's CoT (Commitment of Traders) report showed long bias in the euro dropping a notch on a reduction in euro longs by 4,224 lots and a rise in shorts by 1,354.
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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