- SWFX market sentiment is 63% bullish (-1%)
- 59% of pending orders in 100-pip range are to SELL the Euro
- No data released today
The Euro is expected to make a bearish reversal near 1.1670 today.
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
Apart from the French and German Manufacturing and Services PMIs released early on Friday, no other important data releases are scheduled for today.
EUR/USD trades between strong barriers
EUR/USD was pressured lower on Thursday morning by the combined resistance of the 55– and 100-hour SMAs. This allowed the pair to re-test its one-year low of 1.15 prior to gaining strong bullish momentum and dashing through these lines later in the session.The pair might still edge slightly higher during the first part of the day; however, it does face a significant resistance cluster formed by the 200-hour, 55– and 100-period (4H) SMAs and the weekly PP at 1.1670. This area is likely to halt the pair today, thus letting bears to re-gain some of the lost positions.
Given the strength of the aforementioned support and resistance levels, the Euro might remain stranded in between these barriers until early Monday.
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 63% of open positions being long (-1%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 57% bullish and the US Dollar is 62% bearish.
OANDA traders are bullish on the pair with 60% of open positions being long today (+3%). Saxo bank is likewise standing in the bullish territory with 52% long positions (-4%).
Spreads (avg, pip) / Trading volume / Volatility