EUR/USD: Both retail and CoT bias shifts to majority long
USD outperformance entices shorts into closing out, institutional bias in long territory for the first time since 2018.
EUR/USD Technical analysis, overview, strategies, and levels
Although the euro didn't underperform compared to commodity and high-beta currencies, it was in for serious retreat against the US dollar last week, taking EUR/USD's price to fresh lows and aiding breakouts of key pivot points in line with its volatile technical overview. Data out of the Eurozone was a disappointment with preliminary IFO figures out of Germany showing their worst reading since 2009, and US data mostly failed to impress. Low-impacting data today will hold less relevance in the face of tomorrow's string of preliminary manufacturing and services PMIs.
IG client* and CoT sentiment for EUR/USD
In sentiment, retail bias has shifted from a previous majority short 55% to a majority long 62%. That's also the case for larger speculative traders according to the latest CoT (Commitment of Traders) report, with a reduction in euro shorts by 51,849 lots outdoing a smaller reduction in longs by 6,687 lots, and shifting sentiment to majority long for the first time since September of 2019.
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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