- SWFX market sentiment is 58% bearish
- 54.10% of pending orders in 100-pip range are set to SELL
- Pair opened Friday's session at 1.1770
- Upcoming Events: US CPI and Cre CPI
On Friday morning even more information is available in regards to the technical movements of the EUR/USD currency pair. To be exact, a new pattern has been discovering, which provides valuable information about the support the pair faces.
As the US producer prices growth missed forecasts for July, the EUR/USD currency pair extended gains during Thursday's session. The Euro appreciated against the US Dollar by 0.06% to 1.2981 to begin a dynamically strong ascending trend. The Labour Department revealed that the US Producer Prices Index dropped 0.1%, compared with a 0.1% increase in June. The PPI marked the strongest fall since August 2016, affected by diminished services costs. Despite the weaker correlation between producer prices and consumer prices, the reported drop could raise concerns over the further deceleration in the inflation growth, which would delay the next interest rate hike. In this regard, the Federal Reserve is more likely to raise rates no sooner than in December.
United States Consumer Price Index
On Friday the focus will be on the US Consumer Price Index publication. The data will be released in two sets. One will be the simple CPI and the second one will be the Core CPI. Both should be watched. The data release will be covered and made simple to understand by the Dukascopy Research Team on the bank's webinar platform. The coverage will start at 12:20 GMT, and the data will be published at 12:30 GMT.
EUR/USD reveals junior pattern
The previous long term support line continued to provide resistance to the currency exchange rate in the previous trading session, as it stopped a rebound of the EUR/USD pair.
On Friday morning the currency pair was declining after the encounter of the just mentioned resistance line. It was about to face the support of the 55-hour SMA, which as located near the 1.1750 mark.
Meanwhile, the main focus should be on the fact that an ascending channel pattern was revealed during Thursday's trading session. The pattern's lower trend line provides guidance for the ones, who want to know, where a rebound will occur.
Hourly Chart
The borders of the medium term descending channel have been drawn. It can be observed on the daily chart that eh rate will most likely reach for the 1.18 mark before the decline continues. Due to that reason some traders might want to be bullish in the shorter term.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions are 58% short. On Friday52.40% of pending commands are to buy, compared to 57.82% of trader orders previously.
Traders of OANDA remain largely bearish, as 67.47% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 61.41% of traders are short, compared to 59.70% previously.
Spreads (avg, pip) / Trading volume / Volatility