- SWFX market sentiment is 57% bearish
- 54.42% of pending orders in 100-pip range are set to SELL
- Pair opened Thursday's session at 1.1770
- Upcoming Events: ECB Monetary Policy Meeting Accounts; US Unemployment Claims; US Capacity Utilization Rate; US Industrial Production
The common European currency continues to trade against the US Dollar in the medium term descending channel pattern. Moreover, it has clearly confirmed the borders of a short term channel up pattern. Meanwhile, it can be observed that the rate will fall during Thursday's trading session.
The EUR/USD currency pair dropped sharply owing to the strong US economic release. The Greenback strengthened against the Euro by 0.23% to reach the 1.1713 mark.
However, by the end of the Tuesday's session the European single currency recovered to pre-data levels. The Commerce Department revealed that retail sales in the United States recorder the biggest increase in the last seven months, surging 0.6% month-over-month in July and following an upwardly revised gain of 0.3% in the prior month. July's upbeat figures suggested that the economy kept gaining momentum in the Q3 amid higher confidence in the country's economic outlook.
Meanwhile, the Federal Reserve became less likely to delay the next interest rate increase until 2018.
ECB in focus for the EURUSD
For the EURUSD pair trader's main attention will be set on the ECB Monetary Policy Meeting Accounts which will set the tone for the common European currency. The release of the information will happen at 11:30 GMT. Meanwhile, during the day's trading session there are some US data releases about to occur. The US Unemployment Claims and Philly Fed Manufacturing Index will be published at 12:30 GMT. The release might cause a medium impact on the financial markets. In addition to that, at 13:15 GMT the US Capacity Utilization Rate and Industrial Production will be released. These data sets are of minor impact and are unlikely to cause volatility.
EUR/USD reaches 1.1790 level
The EUR/USD currency exchange rate continues to trade in accordance with the medium term descending channel pattern, which is heading towards a large scale pattern's support line.
Most recently the pair reached the resistance of a junior channel up pattern, which was supported by the weekly PP near the 1.1790 mark. As a result of the encounter, the rate began to decline, and during the morning hours of Thursday's trading it had already passed the support of the 100 and 200-hour SMAs at the 1.1770 level.
It can be expected that by the end of the day the pair will continue to fall, as it faces the support of the 55-hour SMA at 1.1745, which might slow down the decline.
Hourly Chart
It can be observed on the daily chart that the 20-day SMA is no longer playing a significant role. Instead it seems to be ignored at the 1.1759 mark. However, it still is located close to the 55-hour SMA and might show some strength.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions are 57% short. On Thursday 52.00% of pending commands are to buy, compared to 54.67% of buy orders previously.
Traders of OANDA remain largely bearish, as 65.31% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 60.57% of traders are short, compared to 59.63% previously.
Spreads (avg, pip) / Trading volume / Volatility