EUR/USD Sentiment Turns Bullish as Majority Shifts to Buy Side

EUR/USD is seeing a notable shift in market sentiment, with the majority of retail and institutional positioning now favoring the buy side. This transition reflects growing confidence in euro strength, driven by improving Eurozone fundamentals and persistent dollar headwinds following the Supreme Court tariff ruling. The sentiment shift is occurring alongside broader risk appetite, with the S&P 500, Nasdaq 100, and gold all trading constructively, creating a risk-on environment that typically supports EUR/USD upside. The pair has been testing key resistance levels, and the alignment of bullish sentiment with positive technical structure suggests further gains may be forthcoming. However, contrarian traders note that extreme one-sided positioning can sometimes precede reversals, warranting caution. Key technical levels to watch include recent highs as resistance and the 20-day moving average as dynamic support. Economic releases from both sides of the Atlantic this week will be critical in determining whether the sentiment shift translates into sustained directional movement or triggers a positioning squeeze.