- SWFX market sentiment is 64% bullish
- 60% of pending orders in 100-pip range are to SELL the Euro
- Upcoming fundamental events: US Philly Fed Manufacturing Index, US Unemployment Claims
A surge should follow if the 55- and 100-hour SMAs at 1.16 are breached.
The Greenback strengthened against the European single currency, following the US Building data release on Tuesday. The EUR/USD currency pair lost two pips, or 0.02%, to continue fluctuating in the 1.5596 area.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
Calm day
The economic calendar includes only two data releases of intermediate importance today, namely, the Philly Fed Manufacturing Index and the weekly Unemployment Claims published at 1230GMT.
EUR/USD starts day with no changes
Technical signals are bearish today. This means that the Euro could re-test its one-year low of 1.15. The weekly S1 is likewise situated nearby. This scenario is likely if the aforementioned moving averages are not breached.
In case this move does occur, the daily high should be the 1.1670 area where the weekly PP, the 55– and 100-period (4H) and 200-hour SMAs are located.
Hourly Chart
The common European currency has fallen considerably against the US Dollar since mid-April which marks a 5.95% plunge within a couple of weeks. The pair started to recover on May 30 after hitting a six-month low of 1.1550. It is expected that this up-move continues in the medium term.
The 1.18 mark should eventually surrender, thus allowing the pair to appreciate until the 55- and 200-day SMAs and the monthly R1 near 1.20. Daily technical indicators are likewise pointing to a soon recovery.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 64% of open positions being long.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 58% bullish and the US Dollar is 62% bearish.
OANDA traders are bullish on the pair with 57% of open positions being long today (+3%). Saxo bank is likewise standing in the bullish territory with 56% long positions (+1%).
Spreads (avg, pip) / Trading volume / Volatility