EUR/USD: Shrugging off worse than expected preliminary PMIs
A consolidatory session finishing higher, in line with its consolidatory technical overview showing positive technical bias.
EUR/USD Technical analysis, overview, strategies, and levels
The focus yesterday was on preliminary manufacturing and services PMI (Purchasing Managers Index) figures which in terms of the Eurozone, showed worse than expected contraction for the manufacturing sector overall, and where the bloc's manufacturing powerhouse, Germany, came in at a sub-50 (and hence contracting) reading of 43.4. It'll be a light economic calendar today out of the Eurozone until tomorrow's German IFO sentiment figures and the ECB's (European Central Bank) Lagarde speech. The technical overview is showing more positive technical bias but has had difficulty breaching its short-term resistance level. More of its main technical indicators are shifting towards green, but its ADX (Average Directional Index) isn’t showing a propensity to trend.
IG client and CoT sentiment for EUR/USD
In terms of sentiment, upside movement is enticing retail longs into taking profit, with majority short bias rising 4% to match that of larger speculative CoT (Commitment of Traders) report sentiment.
EUR/USD Chart with retail and institutional sentiment
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