- SWFX market sentiment is 61% bearish
- 51% of pending orders in 100-pip range are to BUY the Euro
- Daily high at 1.24
- Upcoming events: Euro zone's Final CPI y/y, FOMC Members Dudley, Mester and Williams to speak
The US National Association of Realtors reported that in January the existing home sales slumped for the second month in a row. Contrary to economists' expectations for the number to have surged 0.9%, existing home sales declined 3.2% in the reported month.
It was the largest drop on year-to-year basis over the three-year period. Yet, the demand for housing is increasing due to the boosting labour market, which results as a shortage of buying opportunities for some potential first-time buyers.
Day with speeches
The Euro zone is to publish the final Consumer Price Index for January at 1000GMT.
Meanwhile, three speeches from FOMC Members are scheduled for today from the President of the Federal Bank of New York William Dudley, the President of the Federal Bank of Cleveland Loretta Master and the President of the Federal Bank of San Francisco John Williams at 1515GMT, 1830GMT and 2040GMT, respectively.
EUR/USD fails to overcome 1.2350
Bulls managed to regain some of their lost positions on Thursday, as the pair bounced off the bottom boundary of the junior channel and tested the 1.2350 mark later in the day. The nearest resistance cluster formed by the 100-hour SMA and the 23.60% Fibo retracement proved to be an unbreakable barrier which sent the Euro for a slight decline.Technical indicators demonstrate that the bullish sentiment should continue dominating in this session. However, the aforementioned resistance circa 1.2360, likewise reinforced by the 200-hour SMA, could put downward pressure on the rate once again, especially when no significant fundamentals are scheduled for today.
The Euro might even push lower just to reach the bottom boundary of the four-month channel near the 1.2250 mark.
Hourly Chart
It seems that the Euro might finally be ready to abandon its high position against the Greenback and move towards the bottom boundary of the prevailing 1,5-year channel, the 55-day SMA and the 50.0% Fibo retracement circa 1.22 during the following weeks.
Daily Chart
Traders are bearish
The number of short positions of the EUR/USD exchange rate is 61% in this session.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 66% bearish and the US Dollar is 58% bullish.
OANDA traders remain bearish in this session, as 55% of open positions, compared to 58% on the previous session. The bearish sentiment of Saxo Bank clients stands at 58% short positions (+1%).
Spreads (avg, pip) / Trading volume / Volatility