EUR/USD: USD pairs set to get volatile on tonight’s FOMC event
Technicals less relevant ahead of fundamental FOMC and tomorrow’s ECB, retail and institutional bias both majority short.
EUR/USD Technical analysis, overview, strategies, and levels
It's a big day for USD denominated pairs, commodities priced in dollars, and risk-related assets like equities and safe haven products. The US Federal Reserve (Fed) is set to keep rates on hold, likely address liquidity injections in the short-term markets, and give investors an idea of what to expect in terms of forward guidance going into 2020. Risk-taking is usually light going into the event, but once it begins expect pivot points to easily get broken, and as a result technical overview, strategies, and indicators will hold significantly less relevance in the face of the fundamental event. Furthermore, once tonight's Fed event is out of the way, focus will shift to tomorrow's ECB (European Central Bank announcement).
IG client and CoT sentiment for EUR/USD
Going into the two events retail traders are majority short 55% and institutional bias is at a majority short 59% as per last Friday's CoT (Commitment of Traders) report.
EUR/USD Chart with retail and institutional sentiment
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