- SWFX market sentiment is 59% bullish (-1%)
- 55% of pending orders in 100-pip range are to SELL the Euro
- No important data releases today
The Euro has accelerated against the US Dollar following a reversal from 1.1740 mid-Friday.
The Markit released Manufacturing Purchasing Managers Index data that came out better-than-expected of 54.4, compared to the 53.9 in the previous period.
"At first glance, the mild acceleration in the rate of output growth and rise in the headline PMI would appear positive," Rob Dobson, a Markit director, said. "However, scratch beneath the surface and the rebound in the PMI from April's 17-month low is far from convincing."
No fundamental releases today
This week will start calmly, as no significant data releases are scheduled for today. One event that traders could look out for is the US 10-y Bond Auction at 1701GMT which might gauge investor confidence on future interest rates could move in the future.
EUR/USD expected to advance today
It seems that the rate might still edge higher in this session, with the upper limit being the weekly R1 and an upward-sloping trend-line circa 1.1870. Advance above this mark is not expected during the following two days, as the Euro is starting to diminish its trading range within a two-week channel up.
In terms of support, it is likely that bears lack the necessary strength to push the pair below its nearest support formed by the 100-hour SMA and the monthly and weekly PPs at 1.1760, especially if no significant data releases are scheduled for today.
Hourly Chart
The common European currency has fallen considerably against the US Dollar since mid-April which marks a 5.95% plunge within a couple of weeks.
The pair started to recover during the second part of last week after hitting a six-month low of 1.1550. It is expected that this up-move continues in the medium term. The nearest support level is the weekly R1, the monthly PP and the 23.60% Fibonacci retracement. By and large, the Euro should continue its appreciation until the 200-day SMA near 1.2050 is reached.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 59% of open positions being long (-1%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 54% bullish and the US Dollar is 58% bearish.
OANDA traders are bullish on the Euro with 58 of open positions being long today (+6%). Meanwhile, the market sentiment of Saxo bank is 52% bearish (-1%).
Spreads (avg, pip) / Trading volume / Volatility