- SWFX market sentiment is 54% bearish
- 57% of pending orders in 100-pip range are set to BUY
- 53% of traders are bullish on the Dollar
- Upcoming Events: Day of silence
Despite a release of better than expected American labour data, the buck did not managed to break the lower support line of a falling wedge pattern. In contrast, it made a sharp rebound that was stopped only this morning near the updated weekly PP at 1.1740. As northern side remains protected by the 200-hour SMA and the upper edge of a junior descending channel, the gradual appreciation of the Dollar is likely to follow this day.
The Euro fell slightly against the US Dollar, as the job market reports showed mixed readings on Friday. The EUR/USD currency pair edged lower to the 1.1681 mark, losing 19 base points or 0.16%, though the strong bullish sentiment managed to keep the exchange rate near the 1.1730 level.
The Labour Department showed that the US job market faced unexpected decrease in jobs, as the economy lost 33K positions in September, reflecting the impact of Hurricanes Harvey and Irma. However, the unemployment rate declined to a new low of 4.2% in the same period. Following the report, market expectations for the Federal Reserve to raise rates in December were still high.
Pause for trading
As it frequently happens, there are no fundamental data releases planned in an economic calendar for today.
EUR/USD breaks upwards
In result of a decrease of the American unemployment rate, traders tried to push the pair through the bottom trend-line of a large falling wedge pattern. However, it made a rebound and in the early Monday morning left the formation in the northern direction. The surge was not sharp, as the pair still needs to cross a combination of the upper edge of a junior descending channel and the 200-hour SMA. In addition to that, it stuck near the updated weekly PP at 1.1740 that is backed up by the 100-hour SMA. These obstacles as well as the Friday's jump by 34 basis points just in hour suggest that the rate is likely to retreat for some time. An aggregate of technical indicators support this scenario. In addition to that, market sentiment remains 57% bearish.
Hourly Chart
Despite developments on hourly chart, from daily perspective the currency pair ended previous week with a 22-pip long candle whose endings touched both boundaries of the pattern. In other words, it did make a fully-fledged breakout from the falling wedge. In this sense, Monday's trading session has to either confirm the breakout or return the pair back into formation. Although the second scenario is more likely, there is a need to take into account that that hasn't crossed the 100% Fibonacci retracement level at 1.1715 yet.
Daily Chart
Traders become neutral
In result of the previous trading session the bearish market sentiment slightly increased, as 54% of open positions are long now. In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 58% bearish and the Dollar is 53% bullish.
Traders of OANDA remain bearish, as 61% (+0%) of open positions are short. Meanwhile, SAXO are also bearish on this currency pair with 58% (+2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility