- SWFX market sentiment is 66% bullish today
- 54% of pending orders in the 100-pip range are set to SELL
- Economic Calendar review at 12:00 GMT
On Monday morning the surge of the EUR/USD was stopped by the resistance of the 200-hour simple moving average. The event resulted in a decline, which was set to meet with various support levels just below the 1.14 mark.
The Greenback weakened against the European Single Currency, following the United States Building Permits release on Thursday at 12:30 GMT. The EUR/USD currency pair 1 minute candle gained only 4 pips, or 0.03% at the release time, but combined with the buying action occurring before the data was released, there was a surge of 17 pips or 0.15% in total.
The Census Bureau released US Building Permits data that came in line with expectation of 1.30 Million. There was no change between actual and forecasted data this time.
Scott Volling, principal at PricewaterhouseCoopers said: "June appeared to be an anomaly, but July results indicate a trend. With permits still fairly solid, we will need to see if the trend continues into the late summer/early fall or if recent permits translate to stronger starts in the coming months ".
Empty day for fundamentals
Monday's and Tuesday's economic calendars are empty. It is the third week of the month. Due to that reason it is no surprise that there are no data releases scheduled.
Meanwhile, note that the Dukascopy webinars program is still full of various programs. Namely, join the Dukascopy Analytics team for the weekly macroeconomic calendar analysis at 12:00 GMT. In addition, at 13:00 GMT there will be a stock review webinar of the Apple stock.
EUR/USD meets SMA resistance
The common European currency met on Friday and did not manage to pass the resistance of the 200-hour simple moving average against the US Dollar. The event resulted in a decline, which lasted into the morning hours of Monday's trading session.On Monday morning the currency exchange rate found support in the junior ascending channel pattern's lower trend line, confirming its strength once more.
Meanwhile, the 200-hour SMA was approaching from the upside. Due to that reason the pair is set to be squeezed in between the resistance and the support line. The squeeze is bound to end up in a break out.
Hourly Chart
Due to the recent drop, a full review of the daily chart has been conducted. There are couple of main points to describe.
First of all relevant Fibonacci retracement levels were drawn, which indicate that the drop was being held back by a 50.00% Fibonacci retracement level. On Friday that level was passed. The next supporting Fibonacci retracement level is at the 1.1284 mark located 61.80% retracement level.
Meanwhile, the most notable fact is the discovery of the large scale descending pattern, which represents the currency exchange rate's decline throughout 2018. Although, the pattern's support line is not going to provide support in the upcoming months, as it is as low as the 1.10 mark.
Daily chart
Open positions of the Swiss Foreign Exchange remain long. Namely, 66% of all open positions are long.
Last week the retail sector was preparing to close their long positions and do additional selling, as trader set up orders were set to sell in more than 70% of all cases throughout the week. Although, this Monday the trader set up orders were set to sell in 66% of cases.
Meanwhile, OANDA traders are no longer bullish on the pair, as only 52% of open positons at the brokerage are long. In addition, SAXO bank traders are also almost neutral, as 51% of their trader open positions are long.
Spreads (avg, pip) / Trading volume / Volatility