- SWFX market sentiment remain 66% bullish today
- 56% of pending orders in the 100-pip range are to BUY
- US CPI and Core CPI
Euro plunges due to ECB remarks on EU bank's exposure to the weak Turkish Lira.
The Energy Information Administration released the US Crude Inventories data that came out higher-than-expected. Instead of the expected negative 2.8 million, the data came out only 1.4 million negative.
The Australia and New Zealand Banking Group announced on Wednesday: "Crude oil prices rose as the reality of US sanctions on Iran weighed on sentiment."
US CPI and Core CPI
On Friday there are some major macroeconomic data releases that could change the position for this currency pair. Namely, US CPI and the Core CPI.
Meanwhile, the data releases will be covered by the Dukascopy research team on the bank's live webinar at 12:20 GMT.
EUR/USD picked up bearish momentum
The Euro failed to overcome the strong resistance of the 200-hour SMA and the weekly PP at 1.1625 on Thursday morning. This increased the bearish pressure which in turn pushed the rate down to the senior channel and a one-year low at 1.1520.Even this significant support level was helpless early on Friday when investors started to short the Euro in the wake of ECB comments on EU banks' exposure to the weak Turkish Lira. The pair plunged 0.65% within three hours. Two support levels that could halt this plunge are the weekly S2 or the monthly S3 at 1.1440 and 1.1366, accordingly.
Given that the pair is strongly oversold now, bulls may try to take over the market later in the day; however, it should be noted that the above fundamentals are still likely to continue pressuring the rate lower.
Hourly Chart
The common European currency has been trading in a long-term dominant ascending channel against the Greenback. However, after the pair hit the 1.26 mark on February 19, the pair began to decline. As a result, the exchange rate tested the lower boundary of the pattern and broke the long term ascending pattern few days ago.
Daily chart
SWFX traders remain bullish on the EUR/USD pair during the morning session, as 66% of open positions were LONG. Moreover, traders set up orders are also bullish, as 56% of trader set up orders are to BUY the currency pair.
Meanwhile, the market sentiments of OANDA traders are bullish on the EUR/USD pair as 59% of open positions are long. In addition, Saxo bank traders are 53% also bullish in regards to this exchange rate.
Spreads (avg, pip) / Trading volume / Volatility