EUR/USD: Euro an outperformer in the FX market
Last week’s gains test negative technical bias, retail sentiment shifts.
EUR/USD Technical analysis, overview, strategies, and levels
Contrary to its technical overview, the euro was an outperformer last week, breaking through last week's Weekly 1st and 2nd Resistance levels as US rate cut likelihoods surged to price in two for this month's Fed meeting, and four by the end of the year. There was also a shift in its daily overview as its bear trend line got broken. A brief glance at its weekly chart and its price is still within its weekly bear trend channel, but that doesn’t mean contrarian breakout strategies can be ruled out. A string of manufacturing PMIs (Purchasing Managers Index) out of the Eurozone (and elsewhere) will be released today following China’s weekend contraction in both services and manufacturing.
IG client* and CoT sentiment for EUR/USD
In sentiment, retail bias shifted from a heavy long 74% at the start of last week to a slight short 53%, far less than that of CoT (Commitment of Traders) bias which rose to 63% on a reduction in euro longs by 12,999 lots and a rise in shorts by 9,515 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%, as of today morning 8am.
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets