- SWFX market sentiment is 65% bearish
- 52% of pending orders in 100-pip range are to SELL the Euro
- Daily low around 1.2350
- Bank Holiday in US
The Euro continued the trend against the Greenback, despite of the US producer prices showing its forecasted growth in January. The EUR/USD pair went up by 17 pips or 0.13% to been seen trading at 1.2483.
The Labour Department revealed that the US Producer Price Index climbed 0.4% in January, as forecasted. Data backed-up its growth rate with strong increase in healthcare and gasoline prices, which moved up 0.7% and 7.1%, respectively. The PPI report fuelled expectations that price growth would accelerate in 2018 even with weaker correlation with inflation of consumer prices. Inflation is likely to be lifted towards the Fed's 2% target, owing to tightening job market, weak US Dollar, as well as larger government spending and tax reform.
Calm session
No fundamentals are scheduled for this session. Banks in the United States are closed due to President's Day.
EUR/USD returns to 1.24
The strong bullish momentum that prevailed in the market last week allowed the Euro to hit a new 2015/2018 high of 1.2550 against the US Dollar early on Friday. This sentiment did allay during the following hours, thus leaving the rate at the psychological 1.24 mark on Monday morning.It is expected that this latest wave down was just a minor correction against the overall up-trend, as bulls were gaining strength for further appreciation within the following trading hours.
Meanwhile, this session should be relatively calm for the pair, as no significant fundamentals are to be released. Thus, the Euro is likely to fluctuate within the bounds of the 55– and 200-hour SMAs in the 1.2472/1.2350 territory. Supported by the weekly PP and the 100-hour SMA at 1.24, the pair could be tended slightly north.
Hourly Chart
Friday's trading session erased some of the gains earned last week. However, it is likely that the Euro manages to re-gain its strength against the Greenback during this week and thus try to push towards the 61.80% Fibo retracement (low and high at 1.0348 and 1.4000, respectively) near 1.26. This level coincides with the upper wedge boundary that might mark a reversal early next week.
Daily Chart
Traders are bearish
The number of short positions of the EUR/USD exchange rate is 65% in this session.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 69% bearish and the US Dollar is 60% bullish.
OANDA traders remain bearish in this session, as 60% of open positions are short (-2%). The bearish sentiment of Saxo Bank clients stands at 59% short positions.
Spreads (avg, pip) / Trading volume / Volatility