- SWFX market sentiment is 58% bearish
- 51% of pending orders in 100-pip range are set to BUY
- 57% of traders are bullish on the Dollar
- Upcoming Events: US Unemployment Claims, Core PCE Price Index, Personal Spending, Chicago PMI, Pending Home Sales
Yesterday the currency pair continued to slip in a small descending channel, following an encouraging release of information on the US Preliminary GDP. Today, the pair is expected to make a rebound either from a combination of the weekly PP at 1.18 and the 200-hour SMA, or from the bottom trend-line of a dominant ascending channel.
The Euro lost against the US Dollar 14 base points, following the Wednesday's report showing the second estimate for the US economic growth. The EUR/USD dropped to the 1.1950 mark and retreated back initially, though the downward trend was sustained to see the pair returning to the last Friday levels by the morning session on Thursday.
The Commerce Department reported that the US economy expanded at a faster-than-expected yearly pace of 3.0% in the Q2. The country's GDP growth marked the strongest reading in more than two years, nearing Donald Trump's target. A rise was led by higher consumer spending and business investment, which could be further translated into a stronger path in the Q3 to dampen possible effects of Hurricane Harvey.
No signifficant data releases today
Even though on Thursday there a scheduled five data releases related to the United States, none of them usually arouses any particular interest among market participants and have a decisive impact on the state of the economy.
For this reason, traders are advised to switch their attention at the Loonie pairs, as at 12:30 GMT there will be a release of data on the Canadian GDP m/m. By the way, this event will be covered by the Dukascopy Research Team at webinar.
EUR/USD plunges to 1.18
As it was expected, during the whole previous trading day the currency exchange rate was moving in ascending channel. At the moment, it is approaching a combined support level formed by the weekly PP at 1.1865 and the 200-hour SMA.
A rebound is expected to happen even if the rate will manage to slightly overstep beyond that barrier. One of the reasons is that a little bit lower there is located a bottom boundary of a large ascending channel that guides movement of the pair. The second reason is that there will be no notable data releases today. This means that the buck will not get any additional impulse from traders, anticipating these events (as it happened during the last couple of days).
Hourly Chart
In result of the previous trading session, the currency pair approached towards the bottom boundary a long-term revised ascending channel, which even more supports a theory that a rebound somewhere around the 1.1860 mark should happen.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions changed a little bit and now are 58% short. Accordingly, the outlook for the Euro is 61% bearish, while for the Dollar 57% bullish.
Traders of OANDA remain bearish, as 64% of open positions are short. Meanwhile, SAXO bank clients changed their opinion, as 60% of traders are short, compared to 64 % previously.
Spreads (avg, pip) / Trading volume / Volatility