EUR/USD: Partial retracement as its price oscillates
Retail shorts unwind on the move lower but still holding majority sell bias.
EUR/USD Technical analysis, overview, strategies, and levels
Monday's gains in EUR/USD's price were in for partial retracement yesterday, and here conformist buy-on-fade strategies outperformed off of yesterday's 1st Support level on a lack of intraday follow through and momentum beyond its key pivot points. Eurozone economic data showed German industrial production growing but below higher expectations, while foreign currency reserves out of the Swiss National Bank surged to nearly 850bn, as the central bank continues its fight against the franc significantly appreciating against the euro. European Commission forecasts showed a lowered outlook for growth. Low-impacting data today for both aspects of this pair, so expect any movement to be unrelated to the economic calendar.
IG client* and CoT sentiment for EUR/USD
In sentiment, majority short retail traders prefer downside moves to unwind shorts, with the bias dropping to 58% from yesterday’s 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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