- SWFX market sentiment is 61% bearish (+1%)
- 66% of pending orders in the 100-pip range are to SELL the Pound
- Strong support is located near the 112.60 mark
- Upcoming events: US Average Hourly Earnings m/m, US Non-Farm Employment Change, US Unemployment Rate, US Preliminary UoM Consumer Sentiment
Halifax report showed that the UK house prices increased more than anticipated 0.5% in November, while the yearly pace of growth slowed to 3.9% from 4.5% in the prior month.
Ahead of the Theresa May's meeting with the European Council President and the European Commission Presidents to make a final decision on the Irish border issue, Britain's manufacturing and industrial production data will be in focus.
Labour data from US
The United States is to publish data on Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate for November at 1330GMT. Later in the day, the University of Michigan is to release its Preliminary Consumer Sentiment at 1500GMT.
USD/JPY tends to reach 114.00
As the Congress managed to avoid government shutdown, the Dollar continued to gain value against the Yen, simultaneously passing the monthly PP and the 50% Fibonacci retracement level at 113.00.At the moment, the pair is facing no technical barriers on its way up until the weekly R2. On the other hand, there are two alleged resistance zones located between the 113.47 and 113.57 as well as 113.86 and 113.91 marks. Moreover, the pair might be stopped near the 113.75 level, as this area represents location of an upper boundary of an alleged junior ascending channel.
There is also a need to take into account an effect from release of the US employment data, as it might either help to push the rate to the above weekly R2 or return it back to the above retracement level.
Hourly chart
It seems that the US Dollar is once again on the course of testing the upper boundary of a one-year descending wedge. The strong bullish sentiment that prevailed the market on Thursday allowed the pair to dash through the monthly PP and the 55-day SMA circa 112.80.
This upward movement has allayed slightly on Friday morning, but nevertheless continues to dominate. The nearest resistance is set by the upper wedge boundary and the weekly R2 circa 114.00. Technical indicators suggest that there is still some upside potential that could be realised early next week.
Daily chart
The bearish SWFX sentiment has increased slightly on Friday, as 61% of open positions are short (+1%). Meanwhile, 57% of pending orders are to buy the US Dollar.
OANDA traders are bullish on the pair, with 52% of open positions being long (+1%). In addition, the number of open positions of Saxo Bank clients is 54% long for the second consecutive day.