- SWFX market sentiment is 52% bullish
- 56% of pending orders in 100-pip range are set to BUY
- 50% of traders remain bullish on the Dollar
- Upcoming Events: FOMC Member Powell Speaks
In result of the Catalan referendum and release of better than expected American manufacturing activity data, the pair broke through a combined support formed by the 100% Fibonacci retracement level and the updated weekly S1. In the first half of the day the Euro might try to restore some lost value against the Greenback. However, a combination of the 55- and 100-hour SMAs is likely to neutralize any further attempt to break to the top.
The Greenback sustained Monday's gains against the Euro, as ISM manufacturing data showed better-than-expected figures.The US Dollar rose slightly against the European single currency by 7 base points to keep its stronger position, with the pair falling further below the 1.1720 level this morning.
The ISM stated that its index for the US manufacturing activity surged to 60.8 points in September, reaching the highest level in more than 10 years. Solid advances in ISM-reported figures to a certain extent reflected affects from Hurricanes. The report also showed an increase in its exports measure as producers benefited from the Dollar's weakness, which made US supplies more attractive to overseas buyers.
No important data releases
Second day of the week is expected to pass relatively quietly for the given currency pair, as economic calendar does not contain any macroeconomic data releases. As a result, the only notable event remains Governor Powell's discussion of a regulatory reform in Washington.
EUR/USD breaks 100% Fibonacci retracement level
Contrary to expectations, the currency pair broke through the combined support set up by the 100% Fibonacci retracement level at 1.1715 and the updated weekly S1 at 1.1710. The reason behind such deep immersion was based on several reasons, such the Catalan referendum and a release of better than expected data on the US manufacturing activity. There is a small chance that the Euro will manage to restore some positions against the Dollar. However, the average market sentiment remains 58% bearish. In addition to that, now traders can rely on the above technical barriers, as a resistance to push the rate towards the 1.17 mark. By the way, from the south the rate does not face any notable obstacles up until the monthly S1 at 1.1658.
Hourly Chart
In result of the previous trading session, the currency pair broke through the 100% Fibonacci retracement level at 1.1715. On the one hand, this means that the rate is free to continue to move further to the bottom. On the other hand, it is still not very clear, whether such overstep was a fully-fledged breakthrough or it had a temporary character and now the pair is likely to resume the surge.
Daily Chart
Traders become neutral
In result of the previous trading session, traders with bullish outlook managed to restore some positions, as 52% of open positions are long. In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: Euro is 55% bearish, while for the Dollar 50% bullish.
Traders of OANDA remain bearish, as 65% (-1%) of open positions are short. Meanwhile, SAXO are also bearish on this currency pair with 55% (-1%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility