- SWFX market sentiment is 53% bearish
- 64% of pending orders in 100-pip range are set to SELL
- 50% of traders are bullish on the Dollar
- Upcoming Events: Empty day
Due to release of better than expected American data, the currency exchange rate slipped to the 1.1605 level. A pressure from various technical indicators suggests that the pair is going to continue to slip towards the 1.1580 mark in nearest perspective.
The range of the US economic reports caused a short-term strengthening of the EUR/USD currency pair, which continued the session at pre-data levels. The European single currency added 25 base points or 0.22% against the US dollar, but quickly returned to the 1.1650 area, where the bearish sentiment was sustained until Monday morning.
The Labour department revealed that the US job growth sped up in October, while the yearly wage growth as well as participation rate fell in the reported period, clouding the outlook of the job market. The report showed that the country's economy added 261K jobs in the reported period, missing forecasts for a 310K increase. The weak pay growth is likely to hamper inflation to reach 2% target.
Day of silence
An economic calendar does not contain any notable fundamental events that are worth following today.
EUR/USD falls to 1.16 amid surprising US data
A release of better that expected data on the US ISM Non-Manufacturing PMI led to sharp appreciation of the buck against the common European currency and resulted in a breakout from two junior ascending channels. An active recovery of the exchange rate seems unlikely, as the northern is contains a bunch of technical indicators, such as the weekly PP at 1.1631 and the falling 55- and 100-hour SMAs. Moreover, there is a slope on a daily chart that is likely to serve as an additional barrier. For this reason, the pair is expected to gradually slip to the bottom towards support area near the 1.1580 mark. However, for now the rate is squeezed between two vises at 1.1625 and 1.1600 and might continue this horizontal movement until catching a proper momentum.
Hourly Chart
There is a tricky situation on a daily chart. On the one hand, appreciation of the buck on Friday pushed the pair out of a junior ascending channel. In that sense, the pair is likely continue its path to the south. On the other hand, if we adjust the bottom edge of that channel, it will appear that the currency rate can make a rebound and continue moving in northern direction. This likelihood increases, as there are no notable barriers in the northern direction up until the 23.6% retracement level at 1.1679.
Daily Chart
Traders remain bearish
In result of the previous trading session the bearish market sentiment slightly decreased, as 53% 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 50% bullish.
Traders of OANDA remain bearish, as 62% (-1%) of open positions are short. Meanwhile, SAXO are neutrally bearish on this currency pair with 53% (-2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility