- SWFX market sentiment is 55% bearish
- 57% of pending orders in the 100-pip are set to BUY
- CB Consumer Confidence at 14:00 GMT
On Tuesday morning the US Dollar had not managed to pass the support of the weekly S1 and a monthly pivot point.Instead the previously drawn short term channel down pattern's resistance was broken.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
CB Consumer Confidence at 14:00 GMT in focus
The day's economic calendar has one minor notable data release scheduled. Namely, the CB Consumer Confidence survey's results will be published at 14:00 GMT.
The data release will be covered by the Dukascopy Analytics team. The live coverage will occur on the bank's live webinar platform. The event will begin at 13:50 GMT.
USD/JPY fails to break out from range
Despite strong bearish sentiment which prevailed early on Monday, the US Dollar failed to move below the combined support of the 55-day SMA, monthly PP and weekly S1 at 109.40. From above, the pair was restricted by the breached channel line and the 55-hour SMA at 109.80.Taking into account these two strong barriers, the rate might be bound to continue moving sideways during the first part of the day. The highest point could be the weekly PP and the 100-hour SMA at 110.10, while support should be provided by the aforementioned 109.40 level.
Technical signals show that a breakout is more likely to occur to the downside. In this scenario, the Greenback would target the 50.00% Fibo retracement at 109.15.
Hourly Chart
The currency exchange rate has broken the long term ascending channel pattern, which was expected to guide the rate higher up to the 111.50 mark. The passing of the support slightly shocked the financial markets, as the passing of the support resulted in a plummeting move down to the 109.40 mark.
However, to note the largest differences from the hourly chart, one needs to first look at the daily simple moving averages. Namely, the 55-day SMA has approached from the downside and is set to support the previously described support cluster.
Daily chart
On Tuesday, 55% open positions of SWFX market traders remained short. It was a decrease compared to the 60% on Friday.
Meanwhile, trader set up orders were 51% to buy. Previously, 54% of set up orders were to buy, on Monday.
It can be deducted from these facts that Dukascopy traders took profits from their short positions during the fall. However, there are no orders set to either of the directions meaning that there is no consistent view on the near future.
OANDA traders are bullish with 53% of open positions going long on the USD/JPY pair today.
Meanwhile, Saxo Bank traders are once more almost neutral, as 51% of open Saxo positions are long.
Spreads (avg, pip) / Trading volume / Volatility