- SWFX market sentiment is 61% bullish today
- Pending orders in the 100-pip range are set to sell in 51% of cases
- Canadian data release ends the week
The EUR/USD has punched through the strong support cluster at 1.1460. Due to that reason it is expected to continue to decline until the end of the week's trading.
On Monday, the European Single Currency depreciated against the US Dollar, following the US Retail Sales data release on Monday at 12:30 GMT. The EUR/USD exchange currency rate lost 6 pips or 0.05% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1625 area.
The Census Bureau released US Retail Sales data that came out lower-than-expected of 0.1% compared with forecasted 0.7%.
Ellen Zentner, chief U.S. economist at Morgan Stanley in New York said: "Retail sales for food services and drinking places may have been impacted by the hurricane in September, as consumer confidence remained solid during the month, which in our view suggests underlying consumer demand should remain intact,".
No more data impacting the EUR/USD
For the rest of the week there will be no macroeconomic data releases that might influence the EUR/USD. Although, macroeconomic data release traders are still set to be active this week.
The data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
The data release is expected to cause a sudden bounce in the USD/CAD of almost 80 base points.
EUR/USD short term review
As the EUR/USD has passed the strong support cluster near the 1.1460 mark, the rate is expected to fall, as it has no other technical support. In general, the rate might go as low as 1.1360, where the next support level is located at.Meanwhile, note that on Monday new pivot point levels will be calculated that might be located above the 1.1360 mark. Their provided technical support might stop the pair from declining.
Hourly Chart
On the daily chart it can be observed that the lower trend line of the dominant ascending pattern has been broken. This has largely changed the whole situation on the pair's charts.
Due to that reason, on Monday, a full review of the currency exchange rate's daily chart will be conducted.
Daily chart
On Friday morning 61% of Swiss traders were long. Previously, 58% of traders were long.
Meanwhile, all of the traders have prepared pending trade orders, which might be executed in certain situations.
All the take profits, stop losses, and position opening orders were set to sell in 57% of all cases.
The situation is slightly contradicting. While some traders have bought the EUR/USD, others have set up pending orders that would sell the EUR/USD, if it continues to decline.