- SWFX market sentiment is 61% bearish
- Trader pending orders are 54% bearish
- Pair opened Tuesday's session at 1.0925
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Upcoming Events: US JOLTS Job Openings; FOMC Member Kaplan's Speech
The fall of the Euro continued on Tuesday morning. However, levels of support were close by. Due to that reason market participants are looking for a passing of a significant clusters or either rebounds about to occur. In both cases there will be ranges to profit from.
According to the Federal Statistics Office, German manufacturing orders rose more than analysts estimated. The number of seasonally-adjusted industrial orders in March surged 1.0%, while most of the experts anticipated only a 0.7% increase. Despite the growth was 2.5% lower than in the previous month, it still remained a signal that the leading European economy develops at a healthy pace. Sower growth came in mainly due to weaker domestic demand, which plunged 3.8%, as a result of stronger pressure on wage growth and selling prices.
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Upcoming events: Minor US data
In the second part of the day some volatility might be induced in the financial markets by medium impact graded US events. At 14:00 GMT the JOLTS Job Openings data will be published. At 20:15 GMT FOMC Member Kaplan is set to give another speech.
Read More: Fundamental Analysis
EUR/USD near 1.09 mark
On Tuesday morning the common European currency continued to depreciate against the US Dollar, as the currency exchange rate passed the support of the weekly S1, which is located at the 1.0916 level. From a technical perspective on the daily chart the currency exchange rate is likely to retreat down to the 1.0833 level, where the closest support cluster begins. However, on smaller timeframes the situation is different, as there are various short term support levels, which could slow down the fall of the Euro or even induce a rebound.
Daily chart
On the hourly chart it can be observed that the decline of the Euro is occurring in a short term descending channel, which is aimed at the lower trend line of the ascending channel pattern. It is highly possible that the reversal and resumption of the surge will occur, when that trend line will be reached. However, the larger scale situation makes it possible that the pattern will be broken.Hourly chart
Read More: Technical Analysis
Market sentiment strongly bearish
SWFX traders remain bearish, as 61% of open positions are short. Meanwhile, 54% of trader set up orders are to sell the Euro.
OANDA traders have decreased their bearish sentiment, as 60.62% of trader open positions are short on Tuesday, compared to 62.16% previously. Moreover, SAXO bank clients have done the same, as 54.89% of open positions are short, compared to the 58.73% positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Average forecast says EUR/USD will trade around 1.10 in August
© Dukascopy Bank SATraders, who were questioned on their longer-term views on EUR/USD between April 9 and today expect, on average, the currency pair to trade around 1.10 in early August. In general, 50% (+3%) of participants believe the exchange rate will be above 1.10 in ninety days, and 34% (+3%) see it above 1.12. In the meantime, 3% (-1%) of those surveyed reckon the pair will be at parity or below.