- SWFX market sentiment is 62% bullish
- 51% of pending orders in 100-pip range are to SELL the Euro
- No significant data releases today
EUR/USD shoots up unexpectedly early on Wednesday.
The Markit released Manufacturing Purchasing Managers Index data that came out better-than-expected of 54.4, compared to the 53.9 in the previous period.
"At first glance, the mild acceleration in the rate of output growth and rise in the headline PMI would appear positive," Rob Dobson, a Markit director, said. "However, scratch beneath the surface and the rebound in the PMI from April's 17-month low is far from convincing."
Calm day
This trading session does not include any important data releases. Some data sets of minor importance, including the US Revised Nonfarm Productivity and the US Trade Balance, are published at 1230GMT.
EUR/USD should remain stable today
The common European currency was guided lower mid-Tuesday where it was stopped by the strong support of the 200-hour SMA and a junior channel circa 1.660.A significant bullish boost to this currency was seemingly provided by the inaugural speech of the new Italian PM as a result of which the pair surged 62 pips within three hours. Its subsequent movement was sideways limited from above by the 100-period (4H) SMA at 1.172.
The rate still shows some potential up to the junior channel line, the monthly PP and the weekly R1 at 1.1760. Given that no significant data releases are scheduled, the Euro should maintain its current trading range in the junior pattern, with the upper boundary being the 1.1760 mark and the lower one—the 200-hour and 55-period (4H) SMAs circa 1.1665.
Hourly Chart
The common European currency has fallen considerably against the US Dollar since mid-April which marks a 5.95% plunge within a couple of weeks.
The pair started to recover during the second part of last week after hitting a six-month low of 1.1550. It is expected that this up-move continues in the medium term. The nearest support level is the weekly R1, the monthly PP and the 23.60% Fibonacci retracement. By and large, the Euro should continue its appreciation until the 200-day SMA near 1.2050 is reached.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 62% 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 56% bullish and the US Dollar is 59% bearish.
OANDA traders are bullish on the Euro with 59% of open positions being long today. Meanwhile, the market sentiment of Saxo bank stands has turned 51% bearish.
Spreads (avg, pip) / Trading volume / Volatility