- SWFX market sentiment remains 58% bearish
- 57.21% of pending orders in 100-pip range to sell
- Pair opened Tuesday's session at 1.1672
- Upcoming Events: CB Consumer Confidence
The EUR/USD currency pair remained near the 1.1650 mark on Tuesday morning. The pair had various reasons for remaining at the previous levels. First of all the surge was overextended from a technical perspective. Secondly, the markets might be preparing for the important data releases from the US, which are scheduled to occur during this week.
Consumer inflation in the Euro zone rose in line with analysts' forecasts last month, official figures revealed on Monday. Eurostat reported that its Final Consumer Price Index came in at 1.3% in June, matching the flash estimate and falling down from 1.4% registered in preceding month. Meanwhile, the so-called core inflation rate rose 1.1% on an annual basis, following May's 0.9% increase.
CB Consumer Confidence in focus
Although it is a rare sight that the US CB Consumer Confidence index release causes volatility, which swing traders can profit from, the Dukascopy Research team has decided upon covering this data release. The index will be published at 14:00 GMT.
EUR/USD fluctuates near 1.1650 mark
On Tuesday morning it could be observed that the common European currency continued to fluctuate against the US Dollar near the 1.1650 mark. It might be a signal that the markets are expecting fundamental clues regarding the strength of one of the currencies. However, from a technical perspective the currency pair had two options. Either it will decline down to the support levels near the 1.16 mark, where the 100-hour SMA is located at together with the weekly PP, or the currency exchange rate will pass the levels of significance near the 1.1650 mark and resume the surge. In that scenario the Euro might surge up to the 1.1750 mark against the Greenback, as there are no notable resistance levels until that level. At the 1.1753 level the weekly R1 is located at.
Hourly Chart
The daily chart signals that the surge is going to make a stop. First of all the pair has reached above the resistance of the upper Bollinger band, which on Tuesday was located at the 1.1645 mark. Secondly, the indication of a pause not a reversal is confirmed by the fact that the Bollinger band is acting alone in the daily chart. It is not being strengthened by any other daily levels of significance.
Daily Chart
Bearish sentiment continues to dominate
The situation in the SWFX markets remains unchanged, as for the ninth consecutive trading session SWFX traders are 52% short in regard to the EUR/USD pair. Meanwhile, trader set up orders are neutral.
Traders of OANDA remain bearish, as 67% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 63.47% of traders are short.
Spreads (avg, pip) / Trading volume / Volatility