- SWFX market sentiment is 65% bearish (+3%)
- 52% of pending orders in 100-pip range are to SELL the Euro
- Daily limit at 1.26
- Upcoming events: US Building Permits, US Housing Starts, US Import Prices m/m, US Preliminary UoM Consumer Sentiment
The Euro continued the trend against the Greenback, despite of the US producer prices showing its forecasted growth in January. The EUR/USD pair went up by 17 pips or 0.13% to been seen trading at 1.2483.
The Labour Department revealed that the US Producer Price Index climbed 0.4% in January, as forecasted. Data backed-up its growth rate with strong increase in healthcare and gasoline prices, which moved up 0.7% and 7.1%, respectively. The PPI report fuelled expectations that price growth would accelerate in 2018 even with weaker correlation with inflation of consumer prices. Inflation is likely to be lifted towards the Fed's 2% target, owing to tightening job market, weak US Dollar, as well as larger government spending and tax reform.
US Building Permits
The United States is to release three sets of data at 1330GMT, namely, the Building Permits, Housing Starts and Import Prices for the same period, while the University of Michigan is going to publish its Consumer Sentiment at 1500GMT.
EUR/USD climbs to three-year high
Contrary to expectations, the Euro managed to maintain its strong upward momentum during the previous session and climb to a three-year high of 1.2550 by Friday morning. This marks a 85 pip advance against the US Dollar in two days and 280 pip rise from the beginning of this trading week.It is expected that the current bullish sentiment could continue early next week, as well. However, the high positioning of technical indicators suggests that some bearish correction should occur in order for the pair to build up the necessary momentum and overcome the aforementioned high.
It is expected that the current bullish sentiment could continue early next week, as well. However, the high positioning of technical indicators suggests that some bearish correction should occur in order for the pair to build up the necessary momentum and overcome the aforementioned high.
Hourly Chart
The common European currency continues to push higher against the US Dollar for the seventh consecutive session. By Friday morning, the pair had reached the upper boundary of a wedge pattern, reinforced by the 61.80% Fibonacci retracement at 1.26 (2014 high of 1.4000 and 2017 low of 1.0350). This area could form a strong resistance, thus sending the pair for a correction south or even longer-term decline early next week.
Daily Chart
Traders are bearish
The number of short positions of the EUR/USD exchange rate is 65% in this session (+3%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 68% bearish and the US Dollar is 62% bullish.
OANDA traders remain bearish in this session, as 62% of open positions are short (+1%). The bearish sentiment of Saxo Bank clients stands at 59% short positions (+1%).
Spreads (avg, pip) / Trading volume / Volatility