- SWFX market sentiment is 62% bearish
- Trader pending orders 53% bearish
- Pair opened Wednesday's session at 1.1134
- Upcoming Events: US Existing Home Sales
The Euro has reached the levels of support against the US Dollar, as forecasted. Meanwhile, the future seems clear. The pair is most likely going to continue the decline, as the course is clearly set. However, there is a support cluster, which is hindering the rise of the Greenback against the Euro.
US homebuilding activity rose slowed unexpectedly last month, official figures revealed on Friday. The Commerce Department reported that housing starts fell 5.5% to a seasonally adjusted annual pace of 1.09M units, the lowest since September 2016, following the preceding month's downwardly revised pace of 1.16M and falling behind analysts' expectations for decline to 1.23M-unit pace. On an annual basis, homebuilding dropped 2.4%.
US Existing Home Sales
This Wednesday is set to be a quiet trading day, as there is only one mentioning worth data release scheduled during the day. However, the data is not likely going to cause an impact on the financial markets. Namely, the US Existing Home Sales data set will be published at 14:00 GMT.
EUR/USD reaches support cluster
As it was expected the common European currency continued its decline against the US Dollar in the previous 24 hours. However, on Wednesday morning a short lived climb of the Euro against the Greenback was expected. Due to the fact that the pair found support and rebounded against the combined support of the weekly S1 at 1.1120 and monthly PP at 1.1117 the rate began to surge. It is highly likely that the pair will reach for the upper trend line of the short term descending channel pattern. The trend line is strengthened by the resistance of the 55 and 100-hour SMAs. Although, the exact level, where the trend line could be reached is unclear. Afterwards it can be expected that the surge of the Buck will continue.
Hourly Chart
The additional and updated information from the daily chart can be stated in one sentence. The lower Bollinger band of the daily chart is moving lower and will soon leave the support cluster, if no notable changes take place, and the pair does not change its direction.
Daily Chart
Bearish sentiment persists
SWFX traders are 62% short in regards to the pair on Wednesday. In addition, 53% of trader set up pending commands are to sell the Euro.
Traders of OANDA have remain bearish in regards to the Euro, as 68.76% of open positions are short on Wednesday, compared to 67.88% previously. In addition, SAXO bank clients also remain bearish, as 61.05% of open positions are short, compared to 60.00% on Tuesday.
Spreads (avg, pip) / Trading volume / Volatility
Average forecast shows EUR/USD will trade at 1.12 in September
Traders, who were questioned on their longer-term views on EUR/USD between May 21 and June 21, expect, on average, that the currency exchange rate may trade at 1.12 during the third week of September. In general, 57% (+3%) of participants believe the exchange rate will be above 1.12 in the following ninety days. Meanwhile, 36% (-2%) of respondents expect to see the rate below 1.10.