- SWFX market sentiment is 56% bearish
- 57.68% of pending orders in 100-pip range are set to SELL
- Pair opened Friday's session at 1.1723
- Upcoming Events: Preliminary UoM Consumer Sentiment
During the last trading session the EUR/USD pair has acted rather unexpectedly, breaking the week long streak of precise forecasts. However, the currency exchange rate remains in the borders of the medium term descending channel pattern. Moreover, it has reached a longer term target faster, by confirming once more the lower trend line of the medium term pattern.
The weekly report on the US unemployment claims provided temporary support for the US dollar during the Thursday's session. The Greenback rose against the Euro by 10 base points to reach the 1.1687 mark. However, the Euro was capable of maintaining strong position until Friday's morning to continue trading above the 1.1735 level.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week. The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K. Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
One minor US data release
This Friday will be a quiet day for swing traders, as there are no notable data sets scheduled to be released. However, there is one data release, which could cause fluctuations in one pair. Namely, the USD/CAD might increase volatility due to the release of the Canadian CPI at 12:30 GMT. The release will be covered by the Dukascopy Research team on the bank's live webinar platform.
EUR/USD breaks pattern
The common European currency for the first time during the week did not follow in accordance with the forecast against the US Dollar on Thursday. As a result the short term situation was reviewed.
During the last 24 hours the pair declined to once more reconfirm the lower trend line of the medium term descending channel pattern. Moreover, it reached the long term target of 1.1670. Afterwards, the pair rebounded and began and surged above the weekly S1 at 1.1725.
It is most likely that the pair will continue to surge on Friday until it reaches the various resistance levels near the 1.1750 mark.
Hourly Chart
The daily chart reveals that notable daily levels of significance have closed in on the currency pair. From the upside the 20-day SMA is located at the 1.1766 mark. Meanwhile, the pair is receiving additional support from the 200-day SMA, which on Friday is located at the 1.1657 level.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions are 56% short. On Friday 53.25% of pending commands are to buy, compared to 52.00% of buy orders previously.
Traders of OANDA remain largely bearish, as 65.47% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 60.21% of traders are short, compared to 60.57% previously.
Spreads (avg, pip) / Trading volume / Volatility