The common European currency has paused its fall against the US Dollar. The reason for that is the fact that the US Dollar weakened in the last 24 hours due to a fundamental event. The reason was the fact that US President Donald Trump fired the Director of FBI James Comey. However, as the middle of the day approached, the financial markets were back on their previous courses.
The number of job openings in the US rose in March, according to the JOLTS monthly report. Data from the US Bureau of Labour Statistics released on Tuesday showed that the US job openings increased to 5.74M over the course of March, following the previous month's downwardly revised figure of 5.68M. Meanwhile, analysts anticipated a slight decrease to 5.67M. Job openings grew across business and professional services as well as in local and state government education, while they declined in education services.
Upcoming events: Draghi and US Imports
EUR/USD trades below 1.09 on Wednesday
On Wednesday morning the common European currency was regaining some of its losses against the US Dollar, as the currency exchange rate traded just below the 1.09 mark. The currency pair was still set to decline down to the strong support cluster below it. The cluster consists of the weekly S2 at 1.0833, 20 and 200-day SMAs at 1.0830 and the 38.20% Fibonacci retracement level, which is located at the 1.0826 mark. However, before that cluster is reached the rate might surge to the resistance put up by the weekly S1 at 1.0916.
Daily chart
Hourly chart
Read More: Technical AnalysisMarket sentiment strongly bearish
SWFX traders have not changed their opinion since Tuesday, as 39% of open positions are long and 54% of trader set up orders are to sell.
OANDA traders remain bearish, as 60.93% of trader open positions are short on Wednesday, compared to 60.62% previously. In addition, SAXO bank clients are also bearish, as 54.39% of open positions are short, compared to the 54.89% positions on Tuesday.
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 10 and today expect, on average, the currency pair to trade around 1.10 in early August. In general, 50% of participants believe the exchange rate will be above 1.10 in ninety days, and 35% (+1%) see it above 1.12. In the meantime, 3% of those surveyed reckon the pair will be at parity or below.