- SWFX market sentiment is 59% bearish
- 59% of pending orders in 100-pip range are set to BUY
- 59.30% of traders are bullish on the Dollar against the rest of the currency market
- Upcoming Events: Empty day
The common European currency continues to trade against the US Dollar, as expected by our analysts. The pair has reached the lower trend line of a medium term ascending channel pattern. Most likely a rebound will occur and the pair will do a short term surge.
EUR/USD revealed muted reaction on the ECB rate announcement ahead of the Central Bank's policy statement. However, the first half an hour of the Mario Draghi speech put the European single currency 72 pips higher against the US dollar, while the further course of press conference managed to keep the Euro above the 1.2000 level.
The ECB President Mario Draghi noted that volatility in the Euro exchange rate was a source of unclarity, causing the necessity to monitor the FX rate impact on price stability being very important for inflation targets and growth. Mr. Draghi stated that underlying inflation trends had improved, but continued to be relatively subdued, while confidence surrounding the future economic growth remained strong.
A silent session
Today there will be no macroeconomic data releases at all, including those that concern the European and North American continents.
However, Dukascopy Research Team welcomes everyone to join the release of the UK CPI data sets at 08:30 GMT. The data release is likely going to cause fluctuations in the financial instruments, which involve the Pound.
EUR/USD reaches medium support
The common European currency continued its decline against the US Dollar, as it was expected on Monday. On Tuesday morning the pair had already rebounded against the combined support of the medium pattern and the 200-hour SMA near the 1.1940 mark.
Due to that reason a surge was expected. However, the rebound is most likely going to be hindered by the 100-hour SMA until the pair reaches the weekly PP at 1.1999, which will be supported by the 55-hour SMA.
Most likely that combined resistance will force the rate to continue the decline.
Hourly Chart
On a daily chart the currency pair has now confirmed a support of a dominant pattern. That indicates that the dominance of various patterns is quite doubtful. Instead one should take them into account as equally strong.
Due to that reason it can be assumed that the various channel up patterns will squeeze the rate into an ascending triangle pattern in the near future.
Daily Chart
Traders still bearish on the pair
The SWFX market sentiment slightly increased since yesterday and now is 58% bearish. In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is as follows. Euro is 61% bearish, while for the Dollar 59.30% bullish.
Traders of OANDA remain bearish, as 59% of open positions are short. Meanwhile, SAXO are also bearish on this currency pair with 58% of open short positions.
Spreads (avg, pip) / Trading volume / Volatility