- SWFX market sentiment is 59% bullish (+3%)
- 62% of pending orders in 100-pip range are to SELL the Euro
- Upside potential until 1.2280
- No fundamental releases today
The common European currency was pressured lower by the 55-hour SMA early on Wednesday.
The Greenback strengthened against the Eurozone's single currency, following the US CB Consumer Confidence data release on Tuesday. The EUR/USD currency pair lost 10 pips, or 0.08%, to continue fluctuating in the 1.2226 area.
The Conference Board Inc. released better-than-expected Consumer Confidence, surpassing the forecasts of 126.0 with the number of 128.7 in April.
EUR/USD currency pair remained under pressure. One of the main reasons for Greenback to rally was high 10-year United States treasury bills, which showed notable gains during the start of the week.
Calm session
This session is likely to show low volatility, as no fundamentals are scheduled for today.
EUR/USD fails to overcome 55-hour SMA
The common European currency failed to move below the 1.22 mark due to the strong support of the 100-day SMA. This was followed by a slight move upwards, but a steep advance was restricted by the 55-hour moving average, a breached trend-line and the 38.20% Fibonacci retracement. This cluster remained an unbreakable barrier during the Asian session, as well.The general tendency of the pair is likely to remain northwards this week, as it should target the 200-hour SMA and the 23.60% Fibo retracement circa 1.2350.
Meanwhile, this session might mark a brief period of consolidation in the 1.2200/60 during the first part of the day in response to pressures from the aforementioned barriers. The latter, however, should be surpassed, and a test of the 100-hour SMA should follow near 1.23.
Hourly Chart
The strong downside momentum this week has resulted in a breakout of the 55-day SMA and the senior channel circa 1.23. By Tuesday morning, the Euro was testing the 100-day moving average.
It is likely that some bullish correction occurs this week; however, the trend in the medium term should nevertheless remain south. The following downside target is the 200-day SMA near 1.20.
Daily Chart
Bulls grow stronger
EUR/USD keeps strengthening its bullish sentiment with 59% of open positions being long (+3%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 52% bearish and the US Dollar is 56% bearish.
The market sentiment of OANDA traders is at equilibrium today. Meanwhile, Saxo Bank clients still remain bearish with 57% of open positions being short (+1%).
Spreads (avg, pip) / Trading volume / Volatility