- SWFX market sentiment is 57% bearish
- 55% of pending orders in 100-pip range are set to BUY
- 54% of traders are bullish on the Dollar
- Upcoming Events: ECB Monetary Policy Meeting Accounts
A release of the US macro data as well as the Fed Meeting Minutes led to rapid depreciation of the Dollar against all major currencies. As a result, the currency pair surged to the 1.1837 level and is likely to continue moving upwards.
The Greenback failed to strenghtnen against the European single currency over the row of the US economic releases on Wednesday. The EUR/USD pair entered an upmove after durable goods data, followed by the FOMC meeting minutes report, which caused 21 base points jump to the 1.1820 mark.
Commerce Department stated that the US durable goods orders fell sharply 1.2% in October, while its core measure marked sligtly weaker increase of 0.4% in the same period. However, the solid growth trend was sutained, pointing to the stronger contribution to the GDP in the Q4. Meanwhile, the FOMS minutes suggested that the key interest rate could be raised soon, if the medium-term prospectives remain upbeat.
No significant data release
Today there will be no fundamental data releases from the American continent. In Europe, the only worthy event will be publication of the ECB Monetary Policy Meeting Accounts at 12:30 GMT.
EUR/USD returns to last week high
A release of the disappointing US Core Durable Goods data created an upside momentum that enabled the pair to break through combined resistance formed by the 100-hour SMA, the weekly PP and the 38.2% Fibonacci retracement level. The subsequent publication of the FOMC Meeting Minutes as well as lowered anxiety about political situation in Germany only extended the surge and elevated the pair to October 26 high located at the 1.1837 mark. From trade patterns perspective, yesterday's soar signified a rebound from the bottom boundary of a senior ascending channel. In essence, the pair is free to continue the surge, facing barriers only near the 1.1860 and 1.1880 levels. However, an area around the 1.1840 represents location of an alleged upper edge of the adjusted dominant descending channel, which is likely to a new rebound.
Hourly Chart
In result of the yesterday's advance the currency exchange rate approached towards the upper boundary of adjusted dominant descending channel. In the meantime, the pair continues to fluctuate within junior ascending channel. So, the question is what trend is going to prevail. The bearish market sentiment and pessimistic outlook for the Euro points out on the upcoming turnaround even though on hourly chart the further advance seems more plausible.
Daily Chart
Traders stay bearish
In result of the previous trading session the bearish market sentiment slightly increased, as 57% of open positions are short now.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 64% bearish and the Dollar is 54% bullish.
Traders of OANDA remain bearish, as 62% (+3%) of open positions are short. Meanwhile, SAXO are neutrally bearish on this currency pair with 60% (+1%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility