- SWFX market sentiment is 58% bearish
- Trader pending orders 55% bearish
- Pair opened Friday's session at 1.1634
- Upcoming Events: A quiet session after ECB
The ECB press conference has caused the markets to think that the Euro is strong as a bull. The EUR/USD currency pair is approaching the high level of 2015, as the rate broke out of the two year descending channel pattern. The break out occurred in the aftermath of the speech given by the ECB president.
Consumer inflation in the Euro zone rose in line with analysts' forecasts last month, official figures revealed on Monday. Eurostat reported that its Final Consumer Price Index came in at 1.3% in June, matching the flash estimate and falling down from 1.4% registered in preceding month. Meanwhile, the so-called core inflation rate rose 1.1% on an annual basis, following May's 0.9% increase.
An empty session
After the jump caused by the ECB on various pairs on Thursday, Friday will be quiet. However, swing traders will still have something to do. Dukascopy Research Team will host a live webinar at 12:00 GMT. In the webinar the Canadian CPI and Retail Sales data sets will be covered. Meanwhile, there does not seem to be anything else notable on the economic calendars.
EUR/USD trades above 1.1650
Yesterday, as Mario Draghi spoke, the common European currency skyrocketed against the rest of the markets. After the ECB press conference the EUR/USD currency exchange rate stopped at the upper trend line of the long term descending channel patter near the 1.1560 mark. Immediately afterwards the markets were watching, will or will not the pair break out of the pattern. The result is that the pattern was broken. The breakout resulted in a 100 base point surge. Moreover, it indicates that the Euro is set to continue to score gains against other currencies in the long term. Meanwhile, it has to be noted that the next target for the pair is the combined resistance of a large scale ascending pattern and the 2015 high level near the 1.1710 mark.
Hourly Chart
The daily chart reveals that there might be a period of consolidation in the works. The reason is the fact that the daily upper Bollinger band has been passed by the currency exchange rate. The band was located at the 1.1625 mark on Friday.
Daily Chart
Bearish sentiment persists
The situation in the SWFX markets remains unchanged, as traders remain bearish with 58% of open positions being short. However, the trader set up pending commands have shifted, as 55% of them are to sell, compared to 57% of trader set up orders are to buy the Euro previously.
Traders of OANDA are bearish, as 68.39% of open positions are short. Meanwhile, SAXO bank clients have increased their bearish outlook, as 63.9% of open positions are short, compared to 62.7% on Thursday.
Spreads (avg, pip) / Trading volume / Volatility