- SWFX market sentiment is 59% bullish
- 58% of pending orders in the 100-pip range are to SELL the Euro
- Upcoming fundamental events: US Capacity Utilization Rate and Industrial Production m/m, Fed Chair Powell Testifies
The Euro is likely to accelerate from the 200-hour SMA.
The Greenback strengthened against the European single currency, following the US Retail Sales data release. The EUR/USD currency pair lost 10 pips, or 0.12%, to continue fluctuating in the 1.7088 area.
The Census Bureau released monthly Retail Sales data that came out better-than-expected of 0.5%, compare to forecasted 0.4%.
Pablo Piovano, an Economist from FXStreet, said: "In addition, the NY Empire State manufacturing index came in above expectations at 22.60 for the current month, a tad lower than June's 25.00 reading. Looking ahead, spot is poised to remain under scrutiny in light of headlines from the Trump-Putin meeting and the upcoming testimonies by Fed's J.Powell on Tuesday and Wednesday."
Fed in focus
The Federal Reserve is set to publish the US Capacity Utilisation Rate and the Industrial Production for the month of June at 1315GMT.
The main focus in this session is put on the Federal Reserve Chair Jerome Powell who is to testify on the Semiannual Monetary Policy Report before the Senate Banking Committee at 1400GMT.
EUR/USD likely to find support near 1.17
It is likely that the nearest support cluster, likewise reinforced by the monthly PP and the 55– and 100-hour SMAs, provides an unbreakable barrier and thus guides the rate towards 1.176 where a trend-line, the 23.60% Fibonacci retracement and the weekly R1 are located.
By and large, a strong upside momentum should not exceed the pair's one-month high of 1.18. Conversely, in case bears take over the market and breach the aforementioned support cluster, the next target for the Euro would be the weekly S1 at 1.16.
Hourly Chart
The massive decline which started mid-April was stopped by the bottom boundary of the senior channel a strong support level near 1.1550.
The general tendency in the long term should be northwards. In terms of resistance, it is likely that the 55-day SMA and the 38.20% Fibonacci retracement at 1.1740 provide a strong barrier in July.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 59% of open positions being long for the third consecutive session.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 52% bullish and the US Dollar is 59% bearish.
Traders remain firmly long, as they expect the Euro to gain even more against the US Dollar in the near future.
OANDA traders are gradually becoming more bullish with 56% of open positions being long on Friday. Meanwhile, the number of open positions of Saxo Bank clients stands at equilibrium on Tuesday, compared to 52% bullish positions during the previous session.
Spreads (avg, pip) / Trading volume / Volatility