FxWirePro: Euro at key support against USD; sentiment points to bearish bias

Euro is currently trading at a key rising trend-line support - a break of which could lead the single currency to as low as 1.12 against the USD.

See the daily closing chart for greater clarity.

The sentiment reports from IG Markets, which is a UK-based company providing trading in financial derivatives such as contracts for difference and financial spread betting, strongly suggest that retail traders remain broadly long on euro against the USD.

IG markets’ retail positions data provide a glimpse to retail traders’ positions, which are largely used a contrarian indicator since retail positioning moves in opposite direction to market movements.

Latest numbers suggest that as of today, 65 percent of the retail positions are on the long side, while 35 percent are short on the euro against the USD, which points to the fact that traders remain broadly biased over long euro trade, which suggests that price might actually break the support.