- SWFX market sentiment is 60% bearish
- 68.79% of pending orders in 100-pip range are set to sell
- Pair opened Tuesday's session at 1.1799
- Upcoming Events: JOLTS Job Openings
The common European currency has shown that there exists a medium term descending channel pattern on the EUR/USD charts. In accordance with the patterns, the rate is supposed to surge. However, the situation is much more complex, as you can read in the hourly chart's review.
The Labour Department revealed that the US economy created 209K positions in July, surpassing forecasts for a 185K increase. In the meantime, the unemployment rate dropped to 4.3% from 4.4% in the reported period, matching expectations. Strong figures in conjunction with 0.3% wage growth, the strongest gain since February, provided good signs to expect better CPI and PPI reports this week. In this context, the Federal Reserve would be reassured that further policy normalisation is reasonable, keeping additional rate hikes on the table.
Single US release
The various financial market instruments might be influenced on Tuesday by changes in the strength of the US Dollar. Namely, the JOLTS Job Openings data will be published at 14:00 GMT. However, the data release is highly unlikely going to influence the markets, as it has not done it historically in a long time.
EUR/USD reveals descending pattern
On Tuesday morning a classic pattern was spotted on the hourly chart for the EUR/USD currency exchange rate. Namely, a junior descending channel pattern was spotted in the borders of the dominant ascending channel. In accordance with both of the patterns, various scenarios can occur during the next two trading sessions. Moreover, the close proximity of the simple moving averages of the hourly chart makes the situation more complex. However, in general the currency pair is most likely going to surge up to the upper trend line of the junior pattern, and it will be propelled higher by the 200-hour simple moving average. Afterwards the rate should decline down to the support line of the dominant channel.
Hourly Chart
The daily chart reveals no additional information, which could help out in a short or long term analysis. The only exception to this rule is the fact that the 20-day SMA is moving upwards near the 1.1670 mark.
Daily Chart
SWFX traders are not changing positions
The situation in the SWFX markets remains unchanged, as SWFX traders are 60% short in regard to the EUR/USD pair. The proportions of the positions have not changed for seven consecutive trading sessions. Meanwhile, 57.10% of trader set up pending commands are to sell the Euro.
Traders of OANDA remain bearish, as 66.53% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 60.40% of traders are short, compared to 59.22% previously.
Spreads (avg, pip) / Trading volume / Volatility