- SWFX market sentiment is 60% bearish
- 52% of pending orders in 100-pip range are set to SELL
- Two-year high located at 1.2093
- Upcoming Events: ADP Non-Farm Employment Change, Unemployment Change, Crude Oil Inventories
The Euro resumed the surge after bouncing off from the 1.2005 level. Weakness of the buck as well existence of medium scale uptrend suggests that bulls want to test the two-year maximum at 1.2093 one more time.
The US factory growth accelerated more than projected by the end of 2017, fuelled by stronger new orders' growth, indicating solid economic momentum in the period. The Institute for Supply Management stated that its Manufactuirng PMI grew to 59.7 in the reported month, suggesting expansion in the sector. In the following FOMS meeting minutes report, the Fed polycimakers indicated that further rate increases would be guided by fiscal stimulus, consumer inflation.
Employment change
The only notable event that is worth following today will happen at 13:15 GMT when the Automatic Data Processing will release an update on employment change in the United States. According to forecasts, only a minor positive change is expected.
EUR/USD rebounds from 1.2005
New trading session the currency exchange rate started with a rebound from alleged support zone located between the 1.2005 and 1.1992 levels. Until release of information on employment change in the United States the pair is expected to spend fluctuating in a two-day long junior descending channel whose boundaries are covered by the 55- and 100-hour SMAs. Due to existence of the above support area and the medium scale uptrend the Euro is expected to continue to appreciate against the Dollar tending to reach and test the two year maximum at the 1.2100 mark. In general, there is a need to keep in mind changes in traders' sentiment, which is becoming too bearish that in nearest perspective might lead to a new turnaround.Hourly Chart
At first glance it seems that the pair will not manage to jump above the 1.2100-1.2160 area, as it represents not only the two-year maximum but also the upper boundary of a long-term ascending channel. The above pattern suggests that the upcoming year the currency rate is likely to spend in a downtrend. However, the fact that the Euro remains strong suggests that the rate might actually break to the top and continue heading towards even larger slope located around the 1.2300-1.2500 mark.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has not changed, as 60% of open positions are short.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 65% bearish and the Dollar is 58% bullish.
Traders of OANDA remain bearish, as 65% of open positions are short. SAXO Bank clients are likewise bearish on the pair with 63% short positions.
Spreads (avg, pip) / Trading volume / Volatility