EUR/USD: Negative technical bias builds ahead of tomorrow’s fundamental ECB event
Relatively rangebound movement in line with its consolidatory overview, but where negative long-term bias continues to permeate.
EUR/USD Technical analysis, overview, strategies, and levels
Yesterday's financial market focus was primarily on risk (or not taking it) as well as the World Economic Forum in Davos, but what little the economic calendar offered out of the EU included ZEW economic sentiment figures which showed better than expected figures following the month before's exit from contraction. And expect a dearth of economic data from the bloc and risk-taking in this pair to remain limited given tomorrow's ECB (European Central Bank) monetary policy announcement. From a technical standpoint – and it'll mean much less as we approach the fundamental event – the overview remains consolidatory but showing more negative technical bias not necessarily due to just long-term EUR weakness but also relative USD strength in the FX market.
IG client and CoT sentiment for EUR/USD
As for retail sentiment, majority long at 60% yesterday is up a notch at 61% as of today morning.
EUR/USD Chart with retail and institutional sentiment
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