- SWFX market sentiment is 54% bullish today
- Pending orders in the 100-pip range are 54% to buy
- US CPI and Powell's speech
The EUR/USD has bounced up to trade above the 1.13 mark. The event was considered as one of the possibilities on Tuesday. In regards to the near future, traders should watch the 1.1270 mark.
The European Single Currency appreciated against the US Dollar, following the US Federal Funds Rate release on Thursday at 19:00 GMT. The EUR/USD exchange currency rate gained 10 pips or 0.09% during a minute, right after the releases. The European Single Currency continued trading at the 1.1370 area against the US Dollar.
The Federal Reserve released US Federal Funds Rate that came out in line with expectation of 2.25%. In addition, the FOMC Statement data release came out on Friday at 19:00 GMT.
Marc Chandler, chief market strategist at Bannockburn Global Forex comments "Fed says little and does less. Recognizes strong economy and acknowledges moderation of business investment, with inflation near target. Nothing to do. No hint at money market pressures or weakness in housing. FOMC to market: See you in December. Gradual hikes to continue."
First US data will be released on Wednesday
On Wednesday, there are two data releases that are set to be covered. Namely, at 09:30 GMT the UK CPI will be published. Afterwards, at 13:30 GMT the US CPI and Core CPI data sets will be released.Thursday will be the last day with notable data releases. At 09:30 GMT the British will publish their retail sales data. Afterwards, at 13:30 GMT the US statisticians will publish their retail sector data.
For more in-depth analysis of this week's fundamental economic events watch the weekly Monday's Poking the Economic Calendar webinar, which is live each Monday at 12:00 both on Dukascopy telefision and YouTube.
EUR/USD daily review
In regards to the near-term future, most likely, the currency exchange rate will move downside towards the weekly S2 at 1.1201 due to the resistances of the horizontal pattern line at 1.3000 and the 100-hour SMA at the 1.1317 mark.On the other side, the supports of the 55-hour SMA at 1.1269 and the weekly S1 at 1.1269 could push the currency pair to trade in the horizontal pattern at the 1.1350 level.
Hourly Chart
A version of a descending pattern is drawn on the daily chart of EUR/USD. Note the fact that the pattern's lower trend line is strengthening the support cluster at the 1.1200 level.
Daily chart
Since Monday, 53% of Dukascopy traders were bullish on the pair. The neutral sentiment had established itself after the US elections.
Meanwhile, traders are still prepared to sell the EUR/USD, as 54% of all trader set up orders are bearish.
During the recent volatility traders of the Swiss Foreign Exchange have not changed their positions at all. Moreover, the trader set up pending orders also remain almost unchanged.