- SWFX market sentiment is 60% bearish
- 53.91% of pending orders in 100-pip range to sell
- Pair opened Wednesday's session at 1.1641
- Upcoming Events: FOMC Statement; Federal Funds Rate
After encountering the 2015 high level the EUR/USD currency exchange rate began a retreat, which continued on during Wednesday morning hours. It is most likely that the currency pair will retreat down to the 1.16 mark, as it is being indicated by various clues from a technical perspective. However, the FOMC Statement and Federal Funds Rate will set the tone in the second half of the day.
Markit's report on the Manufacturing PMI for the Euro zone came in slightly weaker than anticipated in July and had a small impact on the EUR/USD exchange rate. As soon as the release was published, the 19- country currency strengthened against the Greenback by 0.03% to reach 1.6432. The survey showed that the Euro zone's index for manufacturing activity dipped to 56.8, falling short of expectations for 57.3 points. The modest fall in July's data indicated that the economic expansion in the Euro zone lost its momentum for the second straight month, but remained noticeable.
The US Federal Reserve
The main event in regards to the EUR/USD currency exchange rate will come from the United States. The US Federal Reserve is set to make a rate announcement in the second half fof the day. At 18:00 GMT the FOMC Statement and the Federal Funds Rate will be released. However, the markets are not expecting the rate to be changed.
EUR/USD retreats on Wednesday
On Wednesday morning it could be observed that the speculated reaching of the 2015 high level had became reality for the EUR/USD currency pair. However, after reaching the mentioned high level at the 1.1713 mark, the currency exchange rate began a decline. The depreciation of the common European currency against the US Dollar has driven the pair to trade below the support of the monthly R2 at 1.1657 and the moving supports of the 55 and 100-hour SMAs, which are located, respectively, at 1.1652 and 1.1634. Due to the reason that these level of significance have been passed the rate has no notable support until the 1.1594 mark, where the weekly pivot point is located at, and a decline to this level is highly possible during Wednesday's trading session.
Hourly Chart
The daily chart reveals that after the expected stop occurred, the rate now has a free way to move higher, as the upper Bollinger band continues to move higher. However, it still has to be seen, how the fundamental events turn out during the next trading sessions.
Daily Chart
Bearish sentiment continues to dominate
The situation in the SWFX markets remains unchanged, as SWFX traders are 60% short in regard to the EUR/USD pair. Meanwhile, total number of SWFX trader set up orders are 50.64% bullish.
Traders of OANDA remain bearish, as 69.11% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 63.27% of traders are short, compared to 63.47% previously.
Spreads (avg, pip) / Trading volume / Volatility