EUR/USD: Italy’s sovereign debt rating unchanged
Both CoT and retail trader bias in heavy long territory
EUR/USD Technical analysis, overview, strategies, and levels
The euro was an underperformer last week, not just against the US dollar but against the remaining FX majors as well, keeping its price at the lower end of its long-term bear trend channel. The internal bickering between the German constitutional court and the European Central Bank (as well as the European Court of Justice) hasn't subsided, with a news report saying members of the ECB governing council even arguing against a direct response. In credit ratings news, Moody's didn't change the sovereign debt rating for Italy, leaving the country's outlook at 'stable', but the same didn't hold true for DBRS Morningstar, which cut Italy's trend to 'negative' from 'stable'. The weekly technical overview remains bearish but its ADX (Average Directional Index) non-trending.
IG client* and CoT sentiment for EUR/USD
In sentiment, CoT (Commitment of Traders) speculators have reduced their heavy long bias to 65% on a larger increase in shorts (5,390 lots) than longs (2,008 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.
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