- SWFX market sentiment is 59% bearish
- 55% of pending orders in 100-pip range are set to BUY
- 55% of traders are bullish on the Dollar
- Upcoming Events: Day of silence
On Tuesday morning the common European currency was in a rebound against the US Dollar, which was about to stop. The reason for the stop was the resistance of the various hourly simple moving averages, which were set to provide resistance. Due to that it is actually expected that the rate will get squeezed in.
The EUR/USD currency pair revealed a modest reaction on the US economic reports showing some positive changes in the US existing home sales. The Euro lost against the US Dollar just 4 base points to continue slipping further into the 1.1770 area. The National Association of Realtors reported on Friday that the US existing home sales gained 0.7% to a seasonally adjusted yearly rate of 5.39M in September.
The increase was sustained by dissipation of the effects of Hurricanes Harvey and Irma, though an enduring dearth of available properties kept weighing on overall activity. Moreover, weak affordability is likely to keep prices high confusing considerable buyers' interest throughout the US.
Empty day
According to economic calendar, there are no notable data releases scheduled for today.
However, tune in on Wednesday, when the US Core Durable Goods Orders data sets will be published at 12:30 GMT. The Dukascopy research team is planning on covering the data release.
EUR/USD reaches marked support
There are three facts that need to be described to update the situation.
First of all the pair has hit the previously speculated lower trend line of a medium term ascending channel pattern. The rate rebounded against the support after shortly touching it above the 1.1720 mark.
Secondly a rebound followed, which was already stopped on Tuesday morning by the resistance of the 55-hour simple moving average. The SMA is just the first one in a cluster of resistance levels.
Third and last the pair is set to be squeezed in by the medium support and the SMAs.
Hourly Chart
On the daily chart the confirmation of the lower trend line of the long term junior pattern can be seen most precise. It is a quite beautiful sight that the rate has touched the trend line exactly, where it was drawn.
However, the previous trading sessions caused too much volatility, which might have caused some trouble to some of the short sellers.
Daily Chart
Traders remain bearish
In result of the previous trading session the bearish market sentiment still remained unchanged, as 59% of open positions are short now.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 63% bearish and the Dollar is 55% bullish.
Traders of OANDA remain bearish, as 59% (-4%) of open positions are short. Meanwhile, SAXO are also bearish on this currency pair with 58% (-1%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility