- SWFX market sentiment is neutral
- Trader pending orders are 58% to sell
- Pair opened Monday's session at 1.0604
- Upcoming Events: US Bank Holiday
US retail sales rose more than expected last month amid higher demand for furniture and automobiles, figures showed on Friday. According to the Department of Commerce, retail sales advanced 0.6% in December, following the preceding month's upwardly revised 0.2% gain and surpassing analysts expectations for an increase of 0.5%. The following increase provided further evidence that the US economy gained momentum in the last three months of 2016. In addition, retail sales grew 4.1% on annual basis and 3.3% over the past year. Sales of automobiles contributed most to this increase, jumping 2.4%.Excluding volatile items, sales climbed 0.2% last month, compared to November's upwardly revised rise of 0.3%, while analysts anticipated an increase of 0.5% during the reported period.
Separately, the Department of Labor reported its Producer Price Index surged 0.3% in December, after rising 0.4% in the prior month. However, the reading topped economists' forecasts for a 1.1% increase. The PPI grew 1.3% compared to the same period one year ago and 1.6% for all of 2016. The rise was mainly driven by stronger oil prices that rose above $50 per barrel over the past months. In the meantime, the University of Michigan said its flash Consumer Confidence Index fell to 98.1 in January, following December's final reading of 98.2 and missing expectations for 98.6.
Upcoming fundamental releases: A holiday
There are no scheduled data releases in Europe that could affect the financial markets. In the meantime, on the other side of the Atlantic there is a Bank Holiday. However, traders should not relax too much, as tomorrow begins the World Economic Forum.
EUR/USD retreats to 1.06 mark
Daily Chart: As forecasted before, the common European currency has begun a retreat against the US Dollar, as on Monday morning the currency exchange rate was near the 1.06 level. That is due to the fact that the pair is being forced lower by the 55-day SMA, which is located at 1.0639. The resistance level is set to slowly pressure the rate lower through the support levels, which are keeping it near the 1.06 mark. However, that is unlikely to occur today or during tomorrow's trading sessions, as there is still a 45 pip range for fluctuations between the levels of significance.Daily chart
Hourly chart: The hourly chart reveals that the bounce off form the medium term ascending pattern's upper trend line occurred around the middle of Friday's trading session. There can be seen numerous attempts to break through the resistance level. In addition, one more thing is notable. The volatility has increased a lot on the pair. There have been more than one hourly candles at least 50 pips high.
Hourly chart
SWFX traders once more neutral
SWFX traders have become neutral regarding the pair. Meanwhile, 58% of trader set up orders were to sell the Euro.
OANDA traders remain almost neutral, as 49.17% of open EUR/USD positions were long on Monday. Meanwhile, SAXO bank traders increased their bearish outlook, as 59.08% of open positions were short, compared to 58.95% previously.