- SWFX market sentiment is 55% bearish
- 58% of pending orders in 100-pip range are set to SELL
- 52% of traders are bullish on the Dollar
- Upcoming Events: US PPI, ECB President Draghi Speaks, German ZEW Economic Sentiment
In result of previous trading session, the currency rate made a rebound from combined resistance formed by the weekly and monthly PP near the 1.1800 mark. As a result, today the pair is likely to move towards the 38.2% Fibonacci retracement level located at 1.1760.
The Greenback depreciated against the Euro on a slightly weaker number of job openings for October reported on Monday. The EUR/USD exchange rate rose 10 base points to the intraday high at 1.1805. Though, the pair lost all gains to continue trading session nearing 1.1770.
The Labour Department stated that the US job openings cooled unexpectedly in the month of October from a record-high registered previosly. According to the JOLTS survey, the number of jobs expecting to be filled dropped 181K to 6.00M, following an upwardly revised 6.18M in the prior month. Meanwhile, the number of hirings grew to 5.55M, with the most of increase coming from hotel and restaurants, the health care industry, financial services and manufacturing.
US PPI release
There are two data releases planned for today that are worth following. The first one is the German Economic Sentiment that will be announced at 10:00 GMT and the second one is the US PPI that will be published at 13:30 GMT.
EUR/USD remains steady
Yesterday's trading session ended exactly as expected. Initially, the Euro was climbing against the Dollar. However, once the currency rate has reached combined resistance formed by the weekly and monthly PP at 1.1806 as well as the upper boundary of a junior descending channel, it was forced to retreat back to the 55-hour SMA. As all eyes are turned to the upcoming Fed meeting, the pair is not expected to make significant moves today as well. In other words, it is likely to continue fluctuating between the above barrier from the top and the 38.2% Fibonacci retracement level located at 1.1760 from the bottom. A release of the American PPI data might push the rate a little bit lower. But even in that case it is expected to stay above the 1.1730 support zone.
Hourly Chart
Until announcement of decision on the Federal Funds Rate hike, the rate is likely to continue slowly fluctuating between the 38.2% Fibonacci retracement level and the 55-day from the bottom and the weekly and monthly PP as well as the 100-day SMA from the top.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment slightly decreased, as 55% of open positions are short now.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 60% bearish and the Dollar is 52% bullish.
Traders of OANDA remain bearish, as 56% (+2%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 57% (+0%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility