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Thursday, June 20, 2024

EUR/USD Could Fall Next Week as Sentiment Declines

Key Takeaways:

  • Asset managers have reduced their long positions by 5,896 contracts while increasing their short positions by 17,090 contracts compared to the previous week.
  • Institutional investors are becoming increasingly pessimistic about the Euro’s prospects.
  • The overall sentiment among leveraged funds remains bearish, with a higher number of short positions compared to long positions.

EUR Sentiment According to COT

The latest COT report, released by the CFTC on April 26, 2024, shows a bearish sentiment towards the Euro among market participants. The report indicates that asset managers continue to decrease their long positions, while leveraged funds maintain a mixed but overall bearish stance. This is a continuation of bearish sentiment from last week.

EUR/USD also bounced off the 50 EMA, with strong downward strength on the daily chart. If the momentum continues it could lead to the Euro falling and losing more ground within the upcoming weeks:

EURUSD Chart Tradingview

According to the COT report, asset managers, who are often long-term investors, have reduced their long positions by 5,896 contracts while increasing their short positions by 17,090 contracts compared to the previous week. This shift in positioning suggests that institutional investors are becoming increasingly pessimistic about the Euro’s prospects.

EUR Sentiment Asset Managers

Meanwhile, leveraged funds, which include hedge funds and other speculative traders, have shown mixed sentiment. While they have decreased their long positions by 6,628 contracts, they have also reduced their short positions by 5,706 contracts. Despite this mixed positioning, the overall sentiment among leveraged funds remains bearish, with a higher number of short positions compared to long positions.

EUR Sentiment Leveraged Funds
Lazarus
Lazarushttps://ljlnews.com
Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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