- SWFX market sentiment is 54% bullish
- Trader pending orders are 61% to sell
- Pair opened Wednesday's session at 1.0455
- Upcoming Events: US Pending Home Sales; EU M3 Money Supply
Americans became more optimistic about the economy in December since the postelection bump in confidence continues. As data suggest the US consumer confidence reached its highest in more than 15 years during the previous week as Americans expect more strength ahead in business conditions, stock prices and the job market following the election of Donald Trump as president in November. According to the Conference Board the Consumer Confidence Index advanced to 113.7 in December from an upwardly revised 109.4 in November. Meanwhile, the data topped estimates in a Reuters poll for a reading of 109.0. Another reason for the gain in confidence is surging optimism among older Americans. Economists follow confidence indicators because upbeat consumers are more likely to increase personal spending, which makes up most of the US economy.
In the meantime, house prices continued their steady recovery in October, as another spike in borrowing costs after Donald Trump's victory.
Two releases on both sides
In the next 24 hours there are two data releases scheduled, which might affect the EUR/USD currency exchange rate. However, the possibility is highly unlikely as the data is minor, and it is a sure thing that in the event of a divergence from the forecasts it would only cause minor fluctuations. It is usual that after such fluctuations the rate returns to the previous level in thirty minutes. The US Pending Home Sales are scheduled to be released at 15:00 GMT, and this is marked as a medium impact data release. On Thursday morning data from the EU will come out, as at 9:00 GMT the Eurozone's M3 Money Supply data will be released.
EUR/USD breaks through 2015 low level
Daily Chart: The common European currency surged and broke the resistance put up by the 2015 low level at 1.0462 against the US Dollar on early Wednesday morning. The move was unexpected, as the 2015 low level was strong enough to keep the rate down for the past three consecutive trading sessions. Due to that a review of the pair was done. It was found out that the pair is in a week ascending channel, and the lower trend line of that channel together with the weekly PP at 1.0435 on Tuesday provided enough support to push the rate higher.Daily chart
Hourly chart: The hourly chart confirms the hypothesis that the EUR/USD currency exchange rate rebounded against a combined resistance of the weekly PP and the lower trend line of a weak ascending channel pattern. Moreover, it was exactly the pattern's trend line, which provided the support for the pair to rebound. However, the surge might not be long lived, as the rate has already bent the upper Bollinger band and bounced off from it.
Hourly chart
Traders become slightly bullish
SWFX traders remain bullish, as 53% of open positions were long on Wednesday morning. In the meantime, traders have set up 61% of open positions to sell the Euro.
OANDA trader bullish sentiment slightly decreased, as 54% of open EUR/USD positions were long on Wednesday, compared to 55% on Tuesday. Meanwhile, SAXO bank traders remain bearish, as 56.86% of open positions were short, compared to 54.37% before.