- SWFX market sentiment is 56% bearish
- 56% of pending orders in 100-pip range are set to SELL
- 53% of traders are bullish on the Dollar
- Upcoming Events: US Average Hourly Earnings, Non-Farm Employment Change, Unemployment Rate
During previous trading session the Dollar continued to gain value against the Euro, fluctuating in a junior falling wedge formation. A combination of other technical indicators point out an upcoming rebound. However, scenario might be hindered due to fundamental events in the United States.
The Greenback fell modestly against the Euro on the ADP report revealing some weakening in the employment change in November. The EUR/USD lost 5 base points to return ito 1.1810 area and declined further to be seen trading below the 1.1800 area, as the next release was not strong enough to bring the pair back to stronger levels.
The US private sector created 190K jobs in November, down strongly from the prior month, but in line with projections, the ADP report indicated, ahead of more comprehensive the US Labour Departments figures to be issued on Friday. Meanwhile, another data showed the revision of the US unit labour costs, which was at an annualised 0.2% rate in the Q3, compared to the initially reported 0.5% rise.
Official employment data announcement
Today at 13:30 GMT the US Bureau of Labor Statistics will release an update on key employment indicators. The event is expected to cause notable volatility in the markets, although it would be hard to determine the exact strength of market reaction.
EUR/USD reaches 38.2% Fibo at 1.1760
In result of the previous trading session the currency exchange rate has expectedly reached the 38.2% Fibonacci retracement level located at 1.1760. As the pair is also moving in a junior falling wedge formation, a breakout in northern direction is expected to happen. This projection is additionally supported by the fact that the above retracement level coincides with the bottom boundary of a larger descending channel. If the breakout happens, the surge is likely to last until the currency rate will reach the 55-hour SMA or the monthly PP at 1.1807. However, a release of better than expected US employment data might alter this scenario and push the rate straight to alleged support zone located between the 1.1730 and 1.1720 marks.
Hourly Chart
Yesterday's trading session did not bring any notable developments, as the pair continues to move in southern direction in a tiny descending channel that represents a part of a larger five-month long descending channel. Accordingly, the fall of the rate is likely to continue either until combined support formed by the 55-day SMA and the 38.2% Fibonacci retracement level or the 23.6% Fibonacci retracement level located at 1.1681.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment slightly decreased, as 56% 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 61% bearish and the Dollar is 53% bullish.
Traders of OANDA remain bearish, as 58% (-2%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 54% (-2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility