- SWFX market sentiment is 62% bearish
- Trader set up pending orders are 56% short
- Pair opened Friday's session at the 1.1353 level
- Aggregate daily technical indicators bet EUR/USD will remain unchanged
- Economic events to watch over the next 24 hours: All quiet on Friday
Consumer prices in the Euro zone rose slightly on an annual basis in July, official data showed on Thursday. According to final estimates from Eurostat, the Consumer Price Index (CPI) in the region grew 0.2% year-over-year on a non-seasonally adjusted basis last month, up from the 0.1% hike seen in the preceding month and in line with analysts' expectations. On a monthly basis, consumer prices in the 19-nation currency bloc fell 0.6% in July, following the previous month's 0.2% gain and falling behind the 0.4% drop forecast. Meanwhile, so-called core inflation, excluding alcohol, tobacco, food and energy, jumped 0.9% on a yearly basis in the same month, unchanged from last month's reading and in line with market expectations. Energy prices fell 6.7% on an annual basis and 1.0% on a monthly basis, whereas prices for services, the largest component of the bloc's economy, increased 1.2% year-over-year. Back in June, the annual rate of inflation in the Euro zone rose 0.1% for the first time since January. In December 2015, the Euro zone fell into deflation for the first time since October 2009, forcing the European Central Bank (ECB) to launch its massive quantitative easing programme. The main objective of the central bank's monetary policy is to reach price stability across the region. The ECB strives for an inflation rate of below, but close to, 2% over the medium term. June
Initial jobless claims posted a surprise fall, fresh data revealed on Thursday. According to the Department of Labor, the number of Americans filing for unemployment benefits dropped to 262,000 in the week ended August 13, following the preceding week's reading of 266,000, whereas market analysts pencilled in a slight increase to 269,000 in the reported period. Four weeks ago, claims hit the 43- year low of 248,000 touched in mid-April. Last week's data marked the 76th consecutive week of initial jobless claims below the 300,000 level, the longest streak since 1973. Meanwhile, the fourweek moving average, considered a better measure of labour market trends, jumped 2,500 to 265,250 in the week ending August 13. Other data released on Thursday showed an unexpectedly large improvement of business activity in the US mid-Atlantic region. According to the Philadelphia Federal Reserve's survey, the manufacturing activity index rose to 2.0 points in August, after dropping 2.9 in the preceding month, while economic desks anticipated an increase to 1.2 in the reported month. Furthermore, the survey's six-month outlook indicator grew to 45.8 in August from last month's 33.7, posting the highest reading since January 2015. The survey tracks business activity in eastern Pennsylvania, southern New Jersey, and Delaware. The Philly Fed index is seen as one of the first monthly indicators of the health of the US economy.
Upcoming fundamentals: All quiet on Friday
After a busy week for the EUR/USD pair, as information came regarding monetary policy from both sides of the Atlantic. That was a huge addition to the usual information published, which might explain the quiet today. However, it has to be noted that the situation gives additional help to technical analysts, as due to the non-changing of the variables of the equation a trend-line remains unchanged due to the function of the trend remaining the same.
EUR/USD reaches 1.1350 mark on Thursday
Daily chart: The common European currency ended Thursday's trading session at the second monthly resistance at 1.1353 against the US Dollar, which marked the fifth consecutive session of gains for the Euro. However, on early Friday morning, the currency exchange rate has changed its direction, as the resistance proved that it has enough strength to change the pair's direction. Due to that, the currency rate bounced off the monthly R2 and traded at 1.1335 by 5:15 GMT on Friday, and it is most likely to fall to the weekly R2 at 1.1302, where the rate might find some support.Daily chart
Hourly chart: The hourly chart for the EUR/USD pair shows, that the pair surged steadily from the weekly R2 at 1.1302 on 1:00 GMT August 18 to the monthly R2 at 1.1353 by 19:00 GMT. The currency exchange rate moved above the monthly R2 to 1.1366, when it changed its direction. Since then, the currency rate has been falling, as by 5:45 GMT it was at 1.1335.
Hourly chart
SWFX traders bearish on Friday
OANDA trader bearish sentiment has increased compared to Thursday's 61.75%, as, at the moment, 65.18% of OANDA open positions are short. In addition, SAXO Bank clients have also increased their bearish stance, as their open short positions are now at 70.43% compared to 68.23% of last trading session.