- SWFX market sentiment is 60% bullish today
- Pending orders in the 100-pip range are set to sell in 55% of cases
- US CPI data release is in focus on Thursday
The surge of the EUR/USD continued on Thursday. The rate was set to reach above the 1.16 level until the end of the week.
The European Single Currency depreciated against the US Dollar, following the US PPI data release on Wednesday at 12:30 GMT. The EUR/USD exchange currency rate lost 5 pips or 0.04% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1505 area.
The Bureau of Labor Statistics released US PPI data that came out in line with expectations of 0.2%.
"The Producer Price Index for final demand increased 0.2 percent in September, as prices for final demand services rose 0.3 percent, and the index for final demand goods decreased 0.1 percent. The final demand index advanced 2.6 percent for the 12 months ended in September." the U.S. Bureau of Labor Statistics announced on Wednesday.
Second day of data releases
First two macroeconomic data releases occurred on Wednesday. Namely, the GDP and Manufacturing Production of the United Kingdom and the US PPI and Core PPI data sets were released.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Thursday.
In addition, data release traders will watch the publication of the weekly US Crude Oil Inventories at 15:00 GMT.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
EUR/USD short term review
In regards to the near-term future, most likely, the European Single Currency will trade upwards facing the weekly R1 at the 1.1611 level. The simple moving averages and the weekly PP at 1.1537 mark will support the rate during the day.However, today's fundamentals news could push the rate to go downwards to the monthly S1 at the 1.1482 mark.
Hourly Chart
The surge of the EUR/USD was set to meet additional resistance levels on the daily chart. Namely, two simple moving averages were located above the currency exchange rate.
The 55-day SMA was located at the 1.1593 level. Meanwhile, the 100-day simple moving average was located at the 1.1630 mark.
Daily chart
Swiss traders continue to be long on the EUR/USD. Namely, 62% of all open EUR/USD positions were long during the day.
Meanwhile, all of the traders have prepared pending trade orders, which might be executed in certain situations. All the take profits, stop losses, and position opening orders were set to sell in 56% of all cases.
The sell orders are considered normal, as all of the long positions should have take profits and stop losses.