- SWFX market sentiment is 57% bearish
- 59% of pending orders in 100-pip range are to SELL the Euro
- Significant support level near 1.2350
- Upcoming events: US ADP Non-Farm Employment Change
The EUR/USD currency pair was not strongly exposed to the influence of fundamentals on Monday. The Greenback strengthened against the European single currency eight base points, or 0.07%, reaching the 1.2315 level, to continue fluctuating and making the pair go back up and reach new intraday's highs.
The US economy kept expanding in February, data showed on Monday. The ISM revealed that its non-manufacturing PMI stepped lower to 59.5 points in the reported month, compared to 59.9 in January. Growth for the 103rd consecutive month, with 62.8% in February, was reflected by the non-manufacturing business activity index, showing 3% increase from the prior month.
ADP Non-Farm Employment Change
The only noteworthy fundamental event in this session is the ADP Non-Farm Employment Change in February to be released at 1315GMT.
EUR/USD diminishes trading range
The Asian session was relatively calm for EUR/USD on Tuesday. This lack of movement shifted significantly in favour of bulls mid-session when the rate surged 80 pips within a couple of hours. This surge was seemingly caused by uncertainty over global trade wars that weighted heavily on the US Dollar.The Euro still managed to push higher in subsequent hours up to the monthly R1 at 1.2437; however, falling short from the upper boundary of the one-week channel up. Even though technical indicators have been pushed in the overbought territory, they continue flashing bullish signals. Thus, the Euro might still approach the upper channel line of a six-week channel and the weekly R2 at 1.2480 before reversing to the downside.
A possible southern target for today is the 1.2350 mark.
Hourly Chart
During the second part of last week, the Euro has bounced off the 55-day SMA and is moving closer to the 1.24 area. However, the general trend does show that the pair is likely to depreciate in the medium term, suggesting that the current long-term channel could be breached to the downside circa 1.2170. Technical indicators on the daily time-frame are likewise supportive of the bearish scenario.
Daily Chart
Traders are bearish
The number of short positions of the EUR/USD exchange rate is 57% in this session.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 63% bearish and the US Dollar is 56% bullish.
OANDA traders have diminished their bearish sentiment by one percentage point, thus currently being located at 57% short positions. The bearish sentiment of Saxo Bank clients stands at 63% short positions (+3%).
Spreads (avg, pip) / Trading volume / Volatility