- SWFX market sentiment is 65% bullish
- 60% of pending orders in 100-pip range are to BUY the Euro
- Quiet day in terms of fundamentals
A breakout of the 55-hour SMA should send the Euro towards the 1.1850 area.
The Greenback weakened against the Eurozone's single currency, following US Retail Sales data release on Tuesday. The EUR/USD currency pair gained only 2 pips, or 0.02%, to continue fluctuating in the 1.1805 area.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
No fundamentals to focus on
The only fundamental event in this session is a speech by the Federal Reserve Governor Lael Brainard titled "Community Reinvestment Act Modernisation" scheduled for 1315GMT. This event is very unlikely to cause any effect in the market.
EUR/USD tries pushing higher
As apparent on the chart, the Euro diminished its trading range against the US Dollar yesterday, thus being stranded between the aforementioned SMA and a short-term trend-line. It is expected that the former is surpassed today, thus paving the way for further surge up to the 100– and 200-hour moving averages at 1.1770. Technical indicators on the 4H and 1D time-frames suggest that this appreciation should continue during the following week, as well.
In case the 55-hour SMA remains intact, the Euro is to target the 1.1740 area.
Hourly Chart
The common European currency continues to fall against the US Dollar for the third consecutive week. This massive decline has sent daily technical indicators in the strongly oversold territory.
By Thursday morning, the Euro had fallen down to a new 2018 low of 1.18. Even if some bearish sentiment is still to prevail this week, the 38.20% Fibonacci retracement at 1.1740 is unlikely to be breached before the pair starts a new medium-term surge.
Daily Chart
Bulls remain in charge
EUR/USD remains unchanged for the fourth consecutive session with 65% of open positions being long.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 58% bullish and the US Dollar is 62% bearish.
OANDA traders have strengthened their sentiment by two percentage point to 54% long positions. Meanwhile, the market sentiment of Saxo Bank stands at equilibrium.
Spreads (avg, pip) / Trading volume / Volatility