The fall of the Euro continued on Tuesday morning. However, levels of support were close by. Due to that reason market participants are looking for a passing of a significant clusters or either rebounds about to occur. In both cases there will be ranges to profit from.
According to the Federal Statistics Office, German manufacturing orders rose more than analysts estimated. The number of seasonally-adjusted industrial orders in March surged 1.0%, while most of the experts anticipated only a 0.7% increase. Despite the growth was 2.5% lower than in the previous month, it still remained a signal that the leading European economy develops at a healthy pace. Sower growth came in mainly due to weaker domestic demand, which plunged 3.8%, as a result of stronger pressure on wage growth and selling prices.
Upcoming events: Minor US data
EUR/USD near 1.09 mark
On Tuesday morning the common European currency continued to depreciate against the US Dollar, as the currency exchange rate passed the support of the weekly S1, which is located at the 1.0916 level. From a technical perspective on the daily chart the currency exchange rate is likely to retreat down to the 1.0833 level, where the closest support cluster begins. However, on smaller timeframes the situation is different, as there are various short term support levels, which could slow down the fall of the Euro or even induce a rebound.
Daily chart
Hourly chart
Read More: Technical AnalysisMarket sentiment strongly bearish
SWFX traders remain bearish, as 61% of open positions are short. Meanwhile, 54% of trader set up orders are to sell the Euro.
OANDA traders have decreased their bearish sentiment, as 60.62% of trader open positions are short on Tuesday, compared to 62.16% previously. Moreover, SAXO bank clients have done the same, as 54.89% of open positions are short, compared to the 58.73% positions on Monday.
Spreads (avg, pip) / Trading volume / Volatility
Average forecast says EUR/USD will trade around 1.10 in August
Traders, who were questioned on their longer-term views on EUR/USD between April 9 and today expect, on average, the currency pair to trade around 1.10 in early August. In general, 50% (+3%) of participants believe the exchange rate will be above 1.10 in ninety days, and 34% (+3%) see it above 1.12. In the meantime, 3% (-1%) of those surveyed reckon the pair will be at parity or below.