EUR/USD: ECB likely to raise asset purchases
Technicals shelved in the face of fundamental forces with ECB today and NFP tomorrow.
EUR/USD Technical analysis, overview, strategies, and levels
It's a big day for the euro as the European Central Bank (ECB) is set to announce its monetary policy. Expectations are for rates to remain on hold, but where easing could increase sizably in an expansion of its current €750bn bond purchasing program Pandemic Emergency Purchase Programme – a portion of which they've already used. That means volatility may strike this pair's price with pivot points on both ends at risk of breaking, an atmosphere that will likely continue into tomorrow with USD getting volatile on Non-Farm Payrolls (NFP). Services PMIs (Purchasing Managers Index) were better than expected and its unemployment rate while rising was far below estimates. As for EUR/USD's price, it breached well past yesterday's 1st Resistance level to aid conformist breakout strategies in line with its bullish overview.
IG client* and CoT sentiment for EUR/USD
Going into today's event retail traders are majority short at 62%, near opposite CoT (Commitment of Traders) speculators holding a majority long 64% bias.
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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