- SWFX market sentiment is 67% bearish
- 59% of pending orders in 100-pip range are set to SELL
- 71% of pending commands are set to sell the Euro
- Upcoming Events: US PPI, Unemployment Claims plus FOMC Member Dudley Speaks, ECB Monetary Policy Meeting Accounts
During yesterday's trading session, the currency rate expectedly failed to cross combination of the 100- and 200-hour SMAs. Accordingly, today the pair is expected to resume downward movement and try return back to the monthly PP.
German industrial output and the country's exports grew more than anticipated in November, suggesting lingering expansion in the Europe's biggest economy in this year, ignoring political deadlock, when new coalition government was not formed. Industrial production gained 3.4% in November, the strongest gain since late 2009, the Federal Statistics Office reported. Meanwhile, exports increased at a seasonally adjusted 4.1% pace, while imports added 2.3% in the same month. Both readings pushed the trade surplus to €22.3B from €19.9B registered in October.
American PPI
The only macroeconomic data release that is worth following today will be the US Producer Price Index, which is expected to decrease to 0.2% from 0.4%.
EUR/USD fails to break through 200-hour SMA
As it was projected yesterday, bulls did not succeed to push the Euro through second combined resistance barrier formed by the weekly S1 together with the 100- and 200-hour SMAs. Accordingly, the pair made a rebound and started moving back to the monthly PP. From daily perspective bears are still expected to keep their dominance. However, on hourly chart it seems that without an additional impulse the currency rate might fail to slip below the 1.1917 mark, thus extending horizontal movement for another day. As regards an allocation of pending orders in 50-pip range, then more than 60% of them are set to sell. In the meantime, an aggregate of various technical indicators supports possibility of another rebound, suggesting that tomorrow the pair should resume an upwards movement.Hourly Chart
At the moment, the currency rate is fluctuating slightly above the monthly PP, trying to pave the path towards the 61.8% Fibonacci retracement level located at 1.1887. However, in the absence of additional impulse the current horizontal movement might extend for another day.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has increased, as 67% 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 71% bearish and the Dollar is 59% bullish.
Traders of OANDA remain bearish, as 62% (-1%) of open positions are short. SAXO Bank clients are likewise bearish on the pair with 58% (-1%) short positions.
Spreads (avg, pip) / Trading volume / Volatility