EUR/USD: Positive technical bias builds ahead of fundamental events
US dollar retreats in the FX market, majority sell retail bias rises further into heavier short territory.
EUR/USD Technical analysis, overview, strategies, and levels
With the US dollar and safe haven currencies in relative retreat, the euro managed to finish higher and test conformist reversals on a lack of a retracement off of yesterday's 1st Resistance level, which coincided with a mid-term resistance level. All of its main technical indicators are now flashing green, though with fundamental items tomorrow with a central bank decision and the day after with a crucial summit, breakouts on key pivot points may be more likely with few traders willing to hold positions in the face of a significant fundamental move. ZEW sentiment figures were mixed with a slightly worse than expected (and worse than previous) figure for Germany, and today's items out of the US include Empire's manufacturing and more US Federal Reserve (Fed) speak following yesterday's 'accommodation' comments from the Fed’s Brainard.
IG client* and CoT sentiment for EUR/USD
Retail short bias has moved further into heavy short territory rising from 67% to 73%, opposite heavy long CoT (Commitment of Traders) speculators.
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