- SWFX market sentiment is 63% bearish (-2%)
- 54% of pending orders in 100-pip range are to SELL the Euro
- Euro bullish today
- Empty economic calendar
The Euro zone's currency advanced against the US Dollar on Monday on continuously growing surplus trend in the Eurozone's current account. EUR/USD showed strength and moved upwards 10 pips, or 0.08%, and continued rising with enough momentum to reach the 1.2417 level.
In December, the single currency bloc has recorded a €29.9B surplus, while economists expected to see it at €30.5B. Euro zone's current account surplus was 3.5% of the Euro area GDP over the past 12 months, compared with 3.4% a year earlier; however, this figure remained quite stable over the span of past two years. In its monthly release, the ECB also reported that November's unadjusted surplus has increased from €40.1B to €45.8B.
Calm session
No significant fundamentals are scheduled for this session. The only event with intermediate importance is the German ZEW Economic Sentiment published at 1000GMT.
EUR/USD fluctuates around 1.24
As already expected, the common European currency remained stable against the US Dollar which was caused by lack of fundamental events that could introduce volatility in the market. Thus, the pair remained fluctuating around the weekly PP at 1.24 within the last 24 hours.Even though the Euro was pushed slighty lower during the Asian session early on Tuesday, the market is expected to be guided by bulls, especially if the combined support of the 200-hour SMA and the 23.60% Fibo retracement is limiting the pair near the 1.2350 mark.
Technical indicators are likewise supportive of the bullish scenario that should move the rate towards the 55– and 100-hour SMAs near 1.2450. Given that no significant fundamentals are likewise apparent today, this resistance should not be breached.
Hourly Chart
It seems that the Euro might finally be ready to abandon its high position against the Greenback and move towards the bottom boundary of the prevailing 1,5-year channel, the 55-day SMA and the 50.0% Fibo retracement circa 1.22 during the following weeks.
Daily Chart
Traders are bearish
The number of short positions of the EUR/USD exchange rate is 63% in this session (-2%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 67% bearish and the US Dollar is 59% bullish.
OANDA traders remain bearish in this session, as 60% of open positions are short for the second consecutive session. The bearish sentiment of Saxo Bank clients stands at 59% short positions.
Spreads (avg, pip) / Trading volume / Volatility