On Tuesday the EUR/USD currency exchange rate was about to be squeezed in between two levels of significance. However clues indicated that the pair will surge eventually. From a technical perspective the currency exchange rate had already found support in the 23.60% Fibonacci retracement level and a rebound had begun.
Manufacturing activity in the New York State fell markedly in April, raising concerns over economic growth in the Q2 of 2017, a survey revealed on Monday. The New York Federal Reserve reported that its Empire State Manufacturing Index came in at 5.2 for April, following the preceding month's reading of 16.4. Meanwhile, market analysts anticipated a slight drop to 15.2 points during the reported month. Data showed that 35% of the survey respondents said that business conditions had improved, while 30% claimed that they has worsened over the reported month.
Upcoming events: Various US data
EUR/USD trades near 1.0650 mark
On Tuesday morning the common European currency fluctuated against the US Dollar just above the 23.60% Fibonacci retracement level, which is located at the 1.0639 level. The rate had retreated to the retracement level due to bouncing off from the resistance put up by the weekly R1, which is located at the 1.0672 level. It is most likely that the currency exchange rate will rebound against the Fibonacci retracement level and continue on its path higher. However, the strong resistance cluster just above it, near the 1.0680 mark, will hinder the rates surge.
Daily chart
Hourly chart
Market sentiment mostly neutral
Traders are almost neutral, as 51% of open positions are long. Meanwhile, 55% of set up orders are to sell the Euro.
OANDA traders have decreased their bullish outlook, as 58.17% of trader open positions are long on Tuesday, compared to 61.07% previously. Meanwhile, SAXO bank clients remain almost neutral, as 50.46% of open positions are short now, compared to the 52.41% long positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Average forecast says EUR/USD will trade around 1.08 in July
Traders, who were questioned on their longer-term views on EUR/USD between March 18 and April 18 expect, on average, the currency pair to trade around 1.08 at the start of July. In general, 50% (-1%) of participants believe the exchange rate will be generally above 1.08 in ninety days, and 24% (-1%) see it above 1.12. In the meantime, 7% (+1%) of those surveyed reckon the pair will be at parity or below.