- SWFX market sentiment is neutral
- Trader pending orders are 67% to sell
- Pair opened Tuesday's session at 1.0598
- Upcoming Events: German ZEW Economic Sentiment; US Empire State Manufacturing Index; DOMC Member Dudley Speaks; US Treasury Secretary Lew Speaks; FOMC Member Brainard Speaks; WEF Day One
The Euro zone's trade surplus expanded more than expected in November, official figures showed on Monday. According to Eurostat, the Euro zone's trade surplus increased to €22.7 billion, following the previous month's upwardly revised €19.9 billion and surpassing analysts' expectations for an acceleration to €20.8 billion. Back in November, exports and imports rose 3.3% and 1.8%, respectively.
Furthermore, the region's surplus with the rest of the world advanced to €25.9 billion on an annual basis, compared to the previous year's €22.9 billion. On a yearly basis, exports climbed 6% to €184.2 billion, while shipments from abroad rose 5% to €158.3 billion from November's €150.9 billion a year ago. The value of goods exports from January to November stood at €1869.0 billion, since imports declined 2.0%. During the same period in 2015, the region's trade surplus widened to €248.2 billion from €214.3 billion.
Upcoming fundamental releases: First day of the World Economic Forum
It is the first day of the World Economic Forum, and information will be coming without a stop during the two day event. However, before that there are other scheduled data releases, which will affect the EUR/USD currency exchange rate. At 10:00 GMT the German ZEW Economic Sentiment will be released. In addition, data from the US will be coming out in the form of the Empire State Manufacturing Index at 13:30 GMT. Regarding speeches during the day, a whole list could be made. At 11:45 GMT Prime Minister of the UK Theresa May will give a speech that is most likely to shake the markets. At 13:45 FOMC Member Dudley will speak. At 15:00 GMT simultaneously US Treasury Secretary Lew and FOMC Member Brainard are set to give speeches.
EUR/USD remains above 1.06
Daily Chart: The common European currency, as forecasted, found support in the monthly PP at 1.0580 against the US Dollar during Monday's trading session. Due to that reason the currency exchange rate began a surge, which lasted into Tuesday. However, on Tuesday morning the currency pair encountered resistance and began to decline. It is most likely that the rate will decline once more at least until the weekly PP at 1.0594 or the previously mentioned monthly PP. In the meantime, a fall of the Euro is still expected on a larger scale.Daily chart
Hourly chart: The hourly chart reveals that it is not only the before mentioned levels of support that keep the rate higher, but also the hourly simple moving averages. It can be clearly seen that the 100-hour SMA provided support for nine hours until the rate finally broke off the level of significance and surge up to the medium term trend line, which has stopped the surge.
Hourly chart
SWFX traders remain neutral
SWFX traders remain neutral on the pair. In the meantime, 67% of trader set up orders are set up to sell the Euro in favor for the US Dollar.
OANDA traders have become bearish, regarding the pair, as 51.22% of open EUR/USD positions were short on Tuesday. Meanwhile, SAXO bank traders increased their bearish outlook, as 60.62% of open positions were short, compared to 59.08% previously.