- SWFX market sentiment is 60% bearish
- 54.08% of pending orders in 100-pip range to sell
- Pair opened Monday's session at 1.1677
- Upcoming Events: Chicago PMI; US Pending Home Sales; EU Preliminary Flash GDP
On Monday morning the common European currency had resumed its surge against the US Dollar. However, the pair has already hit a long term resistance line, which means that a short term decline of the currency pair should occur in the near future.
The US Bureau of Economic Analysis reported on Friday the first release of the country's GDP for the second quarter rose at an annualised pace of 2.6% from the downwardly -revised reading of 1.2% in the prior quarter, in line with economists' projections. Still, despite the generally positive trend, Friday's data is overall unlikely to bolster any major shift in sentiment on the US economic performance.
Various minor data releases
No data release will be covered by the Dukascopy Research team on Monday. The reason for that is the fact that there are no notable macroeconomic data releases scheduled for the day. In the meantime, there are some minor data sets about to be published. The Chicago PMI will be released at 13:45 GMT. Just after that, at 14:00 GMT the US Pending Home Sales data will be published. In addition to these data sets, markets will be watching the publication of the Preliminary EU Flash GDP at 09:00 GMT.
EUR/USD trades around 1.1731
Beginning of new trading week the currency rate started above multiple technical indicators, such as the 100% Fibonacci retracement level, the updated weekly PP and the 55-hour SMA at 1.1716. To certain extent, this is a result of announcement of the US Federal Funds Rate and Advance GDP last week. Due to the fact that the road downstairs is blocked by the above combined support level, the pair has no other choice that continue to climb towards the updated weekly R1 located at the 1.1815 level. Such scenario falls in line with the rising wedge theory, whose lower support line moves along the 55- and 100-hour SMAs. If the rate reaches the above resistance level, it might give an impulse strong enough to exit the existing formation and approach the bottom boundary of the channel.
Hourly Chart
The daily chart reveals that the upper trend line of an ascending channel pattern is also strengthened by the upper Bollinger band of the daily chart. That means that the 1.18 mark will not be passed easily.
Daily Chart
Bearish sentiment continues to dominate
The situation in the SWFX markets remains unchanged, as SWFX traders are 60% short in regard to the EUR/USD pair. Meanwhile, total number of SWFX trader set up orders are 53.74% bullish.
Traders of OANDA remain bearish, as 70.29% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 62.58% of traders are short, compared to 61.96% previously.
Spreads (avg, pip) / Trading volume / Volatility