- SWFX market sentiment is 59% bearish
- 52.58% of pending orders in 100-pip range to sell
- Pair opened Thursday's session at 1.1740
- Upcoming Events: US Durable Goods Orders, Unemployment Claims
The Federal Reserve has granted the EUR/USD with more force, as the rate has reached above the 1.1750 mark. Due to that fundamental change, which was caused by the release of the FOMC statement, the previously active and monitored ascending channel has been broken. However, the most astonishing fact is that the range up to the 1.1830 mark is as good as free from any resistance.
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.
US Durable Goods Orders
At 12:30 GMT the Dukascopy research team will go live on the bank's webinar platform to cover the release of the US Durable Goods Orders and Unemployment Claims data sets. Most likely the data releae will cause volatility in the financial markets. However, the range of the reaction is unclear, as historical data has shown that it can range from five to fifty base points on the EUR/USD pair.
EUR/USD reaches 1.1750 mark
The common European currency was positioned to suffer losses against the US Dollar on Wednesday morning. However, that did not occur, as due to the US Federal Reserve the EUR/USD currency exchange rate jumped at 18:00 GMT on Wednesday. As a result of the move the currency pair traded just below the 1.1750 mark on Thursday morning. The rate was squeezed in between the weekly R1 at 1.1753 from the upside and the support of the upper trend line of the now broken ascending channel pattern. Most likely the resistance of the weekly R1 will be broken. As a result of such move the currency exchange rate would jump up to the 1.1842 mark. At that level the next notable resistance would be located at, as the weekly R2 is at that level.
Hourly Chart
The daily chart reveals no additional information, as the daily SMAs are far away from the pair. Meanwhile, the Bollinger bands cannot be used for analysis after such a fundamental jump.
Daily Chart
Bearish sentiment continues to dominate
The situation in the SWFX markets remains unchanged, as SWFX traders are 59% short in regard to the EUR/USD pair. Meanwhile, total number of SWFX trader set up orders are 52.22% bullish.
Traders of OANDA remain bearish, as 67.70% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 61.96% of traders are short, compared to 63.27% previously.
Spreads (avg, pip) / Trading volume / Volatility