- SWFX market sentiment is 51% bullish today
- Pending orders in the 100-pip range are 53% to buy
- Only US PPI left on Friday
Note that the hourly chart of EUR/USD has been updated. Meanwhile, the short term forecast for the pair is simple. It is heading down to the 1.130 level.
The European Single Currency depreciated against the US Dollar, following the US Unemployment Rate data release last Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 17 pips or 0.15% during a minute, right after the release. Afterwards, the European Single Currency continued trading at the 1.1415 area against the US Dollar.
The Bureau of Labor Statistics released US Unemployment Rate that came out in line with expectations of 3.7%. In addition, the Non-Farm Employment Change together with the Average Hourly Earnings m/m data release came out also at 12:30 GMT.
The Bureau of Labor Statistics noted: "Total nonfarm payroll employment rose by 250,000 in October, and the unemployment rate was unchanged at 3.7 percent. Job gains occurred in health care, in manufacturing, in construction, and in transportation and warehousing".
Last day with US PPI
On Friday, at 13:30 GMT US Producers Price Index will be out. The event will be covered by Dukascopy Analytics on the webinar platform.EUR/USD daily review
In the near future, the currency exchange rate is expected to continue to decline down to the 1.1300 level. At that level the weekly S1 and the lower trend line of a dominant pattern will meet with the rate.If the rate, bounces off the support level it will face no resistance to reach back up to the 1.1380 levels. On the other hand it might pierce it and continue to decline.
Hourly Chart
The large scale chart was recently reviewed. A large scale horizontal channel, which represents the uncertainty of the future relation of the two currencies, can be observed.
In the near future, the lower trend line of the pattern will be tested.
Daily chart
On Friday, traders remained neutral, as 51% of open positions were long. Most likely they had taken the day off after previously profiting from their long positions that were open during the surge of the US Congressional Elections.
Meanwhile, traders are still prepared to sell the EUR/USD, as 55% of all trader set up orders are bearish.
In general, traders are neutral, but prepared to sell the pair in case it provides them certain signals. For example, passes below the 1.1300 level.