EUR/USD: Euro outperforms despite mixed data
CoT majority long bias drops as euro short positions rise, retail bias opposite majority short.
EUR/USD Technical analysis, overview, strategies, and levels
The euro was an outperformer yesterday amongst the FX majors, easily besting the underperforming greenback and pushing EUR/USD's price across the last of its main short-term daily moving averages. More of its indicators are flashing green, and combined with a trending ADX (Average Directional Movement Index) on the daily that may entice contrarian strategies over conformist ones should volatility pick up. US ISM's non-manufacturing PMI (Purchasing Managers Index) was much better than expected yesterday, and out of the Eurozone retail sales surged nearly 18% while Sentix's investor confidence figure remained in negative territory failing to live up to expectations.
IG client* and CoT sentiment for EUR/USD
In sentiment, the latest CoT (Commitment of Traders) report shows larger speculators reducing their heavy long bias from 73% to 69% on an increase in euro shorts by 9,064 lots and a simultaneous reduction in longs by 10,429 lots. Retail traders are an opposite majority short, the bias rising to 61%.
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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