After a session of consolidation and suffering some losses on Thursday, on Friday morning the common European currency was regaining its lost ground against the US Dollar. It is most likely that the pair will reach the combined resistance of the monthly R2 and 61.80% Fibonacci retracement level near the 1.1190 mark.
The number of Americans filing for unemployment benefits dropped unexpectedly last month, official figures revealed on Thursday. The US Department of Labour reported that initial jobless claims fell to 232K in the week ending May 12, following the preceding week's 236K and posting the third consecutive decline. In the meantime, analysts held expectations for an increase to 240K. Claims remained below the 300K level for 115 straight weeks, the longest stretch since 1973.
Upcoming events: As good as nothing
EUR/USD remains above 1.11 level
After retreating on Thursday the common European currency seemed to be regaining ground against the US Dollar. During Thursday's trading session the currency exchange rate had retreated down to the 1.1075 mark, where it found support. After the change in the direction of the pair the currency pair had broken pass the weekly R2 at 1.1115 on Friday morning. Due to that it can be expected that the rate will surge up to the resistance of the monthly R2 at 1.1187, which is strengthened by the 61.80% Fibonacci retracement level at 1.1190.
Daily chart
Hourly chart
Read More: Technical AnalysisMarket sentiment strongly bearish
SWFX traders remain bearish, as 60% of open positions are short. Meanwhile, 52% of trader set up orders are to buy the Euro.
OANDA traders remain bearish, as 66.30% of trader open positions are short on Friday, compared to 69.19% previously. In addition, SAXO bank clients are also bearish, as 65.16% of open positions are short, compared to the 64.29% positions on Thursday.
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 19 and today expect, on average, the currency pair to trade around 1.10 in August. In general, 54% (+1%) of participants believe the exchange rate will be above 1.10 in ninety days, and 39% see it above 1.12. In the meantime, finally none think that parity is an option.