- SWFX market sentiment is 58% bearish
- 63% of pending orders in 100-pip range are set to BUY
- 55% of traders are bullish on the Dollar
- Upcoming Events: Eurogroup Meetings and US Factory Orders
An admission of guilt by General Flynn led to short-term depreciation of the buck on Friday. However, the overall optimism related to adoption of tax reform improved the situation vie sending the pair to test bottom boundary of a junior ascending channel.
The Greenback made the last attempt to rise against the Yen before falling sharply on non-negative US economic data. The USD/JPY added 5 base points, ahead of the sharp fall to the 111.74 area. However, bulls put the pair back to the pre-data level of 112.60.
US consumer inflation growth weakened in October, as the hurricane-related increase in purchases of motor vehicles started to fade. The Fed's closely watched inflation measure, the Core PCE Price Index excluding energy and food increased 1.4% year-over-year in October, though the figure undershot the bank's 2% target for more than 5 years. Recent economic data strengthened projections for the Fed to raise borrowing costs once again in December.
Quiet Monday
Although there is scheduled one fundamental data release, it is not expected to cause any notable price movements.
EUR/USD starts new week at 1.1870
On Friday, the pair fluctuated quite intensively amid contradicting reports that the US Senate is ready to vote for tax reform, while General Flynn pledged guilty to lying to the FBI. Despite that an anticipated resistance at 1.1936 and the 200-hour SMA at 1.1860 managed to retain the rate. As a result, it is still fluctuating in a junior ascending channel and is about to clash with the upper boundary of a dominant descending channel. As for today, the pair started new trading week in a limbo between the 100- and 200-hour SMAs. Although the upper side is additionally filled with the 55-hour SMA at 1.1884, the 61.8% Fibonacci retracement level at 1.1887 and the weekly PP at 1.1890, the Euro is still projected to pave the path to the north. However, this assumption holds true unless traders interpreted Friday's plunge as a rebound from larger pattern.
Hourly Chart
On daily chart the pair is trading at the bottom boundary of a junior ascending channel. If traders interpreted Friday's drop as a fully-fledged rebound from the upper-trend line of a dominant descending channel, the pair will continue moving downwards. In the opposite case, bulls are going to regain momentum and elevate the once again to the 1.1900 mark.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment remained unchanged, as 58% 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 61% (+3%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 58% (+2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility