- SWFX market sentiment is 52% bullish
- Trader pending orders are 55% to sell
- Pair opened Tuesday's session at 1.0612
- Upcoming Events: FOMC Member's Kashkari's Speech; FOMC Member's Harker's Speech
US building permits advanced more than expected whereas homebuilding activity weakened in January, official figures revealed on Thursday. The Commerce Department reported building permits rose 4.6% to a seasonally adjusted annual pace of 1.29 million in January, following the previous month's upwardly revised 1.23 million units and surpassing analysts' expectations for a 1.23 million unit rate. The increase caught markets by surprise, as the figure reached the highest level since November 2015, suggesting solid growth in starts in the middle of 2017.
Meanwhile, housing starts declined 2.6% to an annualized rate of 1.25 million units in the same month, following December's upwardly revised reading of 1.28 million, whereas economists expected them to increase to a 1.23. Analysts suggest that the housing market recovery is likely to be sustained by strong labor market, which supported household formation. Separately, the Philadelphia Federal Reserve said its Manufacturing Index jumped to 43.3 points in February, the highest level in 33 years, driven by a jump in new orders, which climbed to 38.0 from 26.00. Data also showed the Employment Index fell to 11.1 from 12.8, while the Business Outlook Index for the next six months slid to 53.5 points.
Upcoming events: FOMC speakers
The speeches of US monetary policy makers, which are set to dictate the financial markets during this week, will begin on Tuesday. First of all at 13:50 GMT FOMC member Kashkari is set to give a speech. Afterwards, at 17:00 GMT, FOMC Member Harker is scheduled to speak. These will be the first two monetary policy speeches out of five that are scheduled for this week.
EUR/USD declines below 1.06 mark
Daily Chart: The common European currency depreciated on Tuesday morning against the US Dollar, as the currency exchange rate passed the combined support of the weekly PP at 1.0604 and the 55-day SMA at 1.0597. Due to this factor the currency pair is set to continue the fall, as the closest support level to the pair is at 1.0529, where the weekly S1 is located at. Moreover, as the weekly S1 is a lone support level, it is highly possible that it will be also easily passed in the upcoming trading sessions. The closest support below the weekly S1 is the lower Bollinger band, which was near the 1.05 mark on Tuesday.Daily chart
Hourly chart: The hourly chart for the pair shows that there are no hourly support levels, which could slow down the fall of the Euro against the US Dollar. In addition, a short term descending channel can be spotted. If the channel remains in force, then the currency exchange rate is most likely to reach the weekly S1 level at 1.0529 in the time period from 17:00 GMT to 01:00 GMT.
Hourly chart
SWFX traders are slightly bullish
SWFX traders are bullish on the pair, as 52% of open positions are long on Tuesday. Meanwhile, 55% of trader set up orders are to sell the Euro.
OANDA traders remain bullish on the pair, as 53.27% of trader open positions are long at the marketplace, compared to 54.18% on Monday. In the meantime, SAXO bank clients have become neutral, as 50.52% of the bank's clients are shorting the pair, compared to 51.85% previously.