- SWFX market sentiment is 53% bearish
- 54% of pending orders in 100-pip range are set to SELL
- 50% of traders are bearish on the Dollar
- Upcoming Events: US Prelim UoM Consumer Sentiment, APEC Summit
The Dollar continued to weaken against the Euro amid ongoing uncertainty over the terms of implementation of the corporate tax cuts. An active ascending channel suggests that the currency rate will continue climbing to the top towards the 23.6% Fibonacci retracement level located at 1.1679.
The EUR/USD exchange rate continued to increase on the US JOLTS report on Monday. The release caused 20% volatility in the pair, where the Euro lost 3 base points against the US Dollar, but kept recovering in an attempt to enter the 1.1600 area again. The bullish sentiment was fuelled additionally by the Fed's Yellen speech in the evening.
The JOLTS report showed that demand for workers in the US remained solid, with 6.1M job openings registered in September. The job opening rate, as well as pace of hiring were unchanged at 4% and 3.6%, respectively. Despite the recent hurricanes' fallout, levels were steady, indicating the resilient labour market. However, nearly 1.7M people were laid off or fired in September, compared with 1.5M a year ago.
APEC Summit in Vietnam
There are no macroeconomic data releases planned for today. For this reason, the only two events that might drive the given currency pair are the APEC Summit in Vietnam and unceasing concerns over the future of tax code reform.
EUR/USD advances in ascending channel
The Dollar was quoted weaker against the Euro on Thursday amid concerns that the Senate would postpone corporate tax cuts until 2019. The situation did not improve even when the House relevant committee approved the current tax plan. On hourly chart these changes resulted only in minor adjustments of the current ascending channel boundaries. As an area near the 1.1630 level represents location of the weekly PP, the 55-, 100- and 200-hour SMAs, the exchange rate is not expected to make major advances in the southern direction. On the other hand, starting from the 1.1660 and up until the 1.1680 mark the pair will face different resistance barriers, including the 23.6% Fibonacci retracement level, which most probably are going to hamper the pair from active surging as well.
Hourly Chart
Yesterday's trading session result in quite active advance of the Euro against the Dollar. Basically, the today the currency pair is free to continue moving towards the 23.6% Fibonacci retracement level located at 1.1679. On the other hand, an area near the 1.1658 mark represents location of an alleged resistance barrier that might turnaround the pair.
Daily Chart
Traders stay neutrally bearish
In result of the previous trading session the bearish market sentiment slightly increased, as 53% of open positions are short now.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 60% bearish and the Dollar is 50% bearish.
Traders of OANDA remain bearish, as 62% (+1%) of open positions are short. Meanwhile, SAXO are neutrally bearish on this currency pair with 55% (+2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility