- SWFX market sentiment is 61% bullish (+1%)
- Pending orders in 100-pip range are set to sell in 58% of all cases
- The busy Thursday for US data releases has come
The EUR/USD currency exchange rate has surged and revealed a new medium term ascending pattern. In addition, the pair is expected to also surge in the short term.
The Greenback strengthened against the European single currency, following the US ISM Manufacturing PMI data release on Monday at 14:00 GMT. The EUR/USD currency pair lost six pips, or 0.05%, to continue fluctuating in the 1.1610 area.
The Institute for Supply Management released the monthly US Purchasing Managers' Index data that came out better-than-expected of 60.2, and better from the previous period.
Busy Thursday has come
For the whole week the US macroeconomic data traders were expecting Thursday. The day has come. There will be notable data releases occurring that will influence the financial markets through the strength of the US Dollar.
There will be two releases. Namely, ADP Non-farm Employment Change at 12:15 GMT and the ISM Non-Manufacturing PMI at 14:00 GMT.
Both data releases will covered by the Dukascopy Analytics team on the bank's live webinar platform. Both coverages will begin ten minutes before the data gets released.
EUR/USD reveals ascending pattern
The pair has revealed a medium term ascending channel pattern, which is set to guide the currency exchange rate during July. It was noticed after the currency exchange rate bounced off the combined support of various levels of significance near the 1.1650 mark.
Secondly, the rate has surged above the PP near the 1.1680 mark. Due to that reason the pair faces no resistance up to the 1.1760 mark, where the next resistance levels are located at.
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 pair has fluctuated in the 1.1545/1.1800 range since mid-May. The 1.18 mark should eventually surrender, thus allowing the pair to appreciate until the 200-day SMAs near 1.20.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 61% 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 55% bullish and the US Dollar is 60% bearish. Despite the strong fall apparent last week, traders nevertheless expect some weakening of the US Dollar. In case the Euro is starting to become more bullish, this might indicate to appreciation in the medium term.
OANDA traders remain with a bullish view, as 56% of open positions were long on Thursday. Previously, 54% were long. A different situation is apparent with Saxo Bank clients who have become almost neutral with 51% long positions.
Spreads (avg, pip) / Trading volume / Volatility