- SWFX market sentiment is 65% bullish
- 59% of pending orders in 100-pip range are to BUY the Euro
- Quiet day in terms of fundamentals
- Bank Holiday in Germany and France
EUR/USD is likely to remain steady in this session.
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.
Quiet day
The only fundamental event in this session is a speech by the President of the Federal Reserve Bank of Atlanta Raphael Bostic who is to discuss the economic outlook and price-level targeting at 1530GMT. Meanwhile, banks in Germany and France are closed today due to Whit Monday.
EUR/USD should remain calm
During the past trading sessions, the rate has been moving relatively sideways with a slight tendency south. The same situation might occur during this session, as well; however, no massive leaps either direction should occur due to several European banks being closed today.
Bears might try to push the rate down to the weekly S1 at 1.17, but a move below it is rather unlikely. If looking at the upside potential, the pair is expected to find strong resistance near 1.1820 where the 55– and 100-hour SMAs and the monthly S2 are located.
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.
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 fifth 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 remain bullish with to 53% of open positions being long today. Saxo Bank clients share the same sentiment with 53% long positions.
Spreads (avg, pip) / Trading volume / Volatility