Hi traders,
The EUR/USD pair lacked direction during this trading week but is likely going to close slightly higher. The recent push to the upside was fueled by weaker-than-expected US retail sales, which came in -16.4% vs -12% expected.
The economic surprise index is still quite low for the US dollar, with a score of 3 out of 10, while positioning remains strong and bullish.
Economic surprises in Europe are even more bearish with a reading of 2 / 10, and positioning remains very bearish as well. We'll update our positioning index as soon as the CFTC releases the new numbers.
Correlations will be explained in the following trade idea.
From a technical standpoint, the EUR/USD pair retraced at a strong support level, but bulls should remain cautious as any upside movements might be short-lived. We remain bearish on the pair on any short-term strength.
The EUR/USD pair lacked direction during this trading week but is likely going to close slightly higher. The recent push to the upside was fueled by weaker-than-expected US retail sales, which came in -16.4% vs -12% expected.
The economic surprise index is still quite low for the US dollar, with a score of 3 out of 10, while positioning remains strong and bullish.
Economic surprises in Europe are even more bearish with a reading of 2 / 10, and positioning remains very bearish as well. We'll update our positioning index as soon as the CFTC releases the new numbers.
Correlations will be explained in the following trade idea.
From a technical standpoint, the EUR/USD pair retraced at a strong support level, but bulls should remain cautious as any upside movements might be short-lived. We remain bearish on the pair on any short-term strength.
