EUR/USD: European currencies outperform on Friday, aiding retail long positions
Eurozone economic data failed to impress on Friday, PMIs up next
EUR/USD Technical analysis, overview, strategies, and levels
Despite worse than expected data on Friday out of the Eurozone that could worsen over the coming months, the euro outperformed on Friday alongside European currencies like the pound and franc following the UK’s formal exiting from the EU. Its price didn’t reach the upper end of last week’s Weekly 1st Resistance, but it blew past daily pivot points on Friday. More economic data awaits with manufacturing PMIs (Purchasing Managers Index) early on out of the bloc, and the evening’s US ISM figure closely watched for USD related pairs. Despite the gains, the weekly overview remains consolidatory and showing more long-term negative bias.
IG client* and CoT sentiment for EUR/USD
In sentiment, retail longs were beneficiaries of Friday’s move, sending majority long bias from 66% down to 58%, while the latest CoT (Commitment of Traders) report shows majority short bias rising a notch to a near opposite 57% as euro short positions rise by 24,280 lots outdoing a rise in euro long positions by 12,437 lots.
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%.
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