- SWFX market sentiment is 60% bullish today
- Pending orders in the 100-pip range are set to sell in 53% of cases
- US Retail Sales on Monday
On Monday morning EUR/USD remained near previous day's trading levels. In general, it could be seen that, if the pair breaks resistance at 1.1570, the currency exchange rate could easily jump to the 1.1640 mark.
The European Single Currency appreciated against the US Dollar, following the US CPI data release on Thursday at 12:30 GMT. The EUR/USD exchange currency rate gained 24 pips or 0.21% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1583 area.
The Bureau of Labor Statistics released US CPI data that came out lower-than-expected of 0.1% compared with forecasted 0.2%.
"In September, the Consumer Price Index for All Urban Consumers increased 0.1 percent seasonally adjusted; rising 2.3 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy rose 0.1 percent in September (SA); up 2.2 percent over the year (NSA)" the U.S. Bureau of Labor Statistics announced on Thursday.
First week's data release already on Monday
Usually Monday's are empty on the economic calendar. Today is an exception. The US Retail Sales data sets will be published at 12:30 GMT.
The data release cover will begin on the webinar platform at 12:20 GMT.
Meanwhile, macroeconomic data release traders will also be on alert on Tuesday morning. At 08:30 GMT the UK Average Earnings index and other UK's employment data sets will be published.
EUR/USD short term review
In regards to the near-term future, watch the 55-hour simple moving average at the 1.1570 level. If it gets broken, the currency exchange rate will reach for the weekly R1 at the 1.1640 mark.On the other hand, if the pair breaks free from the SMA to the downside, it will fall down to the 1.1530 mark, where together the 100-hour SMA and the weekly PP are located at.
Hourly Chart
On the daily chart one can observe that the currency rate on Monday was squeezed in between the 55-day simple moving average at 1.1590 and the weekly PP.
Combine the daily and the hourly chart to understand the short term movements this week of the EUR/USD. If one does not do that, sudden surprises might occur.
Daily chart
On Monday, traders continued to hold mostly long positions, as 60% of all open positions on the Swiss Foreign Exchange were long.
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 profit and stop loss orders set up. In general, traders are riding the surge of the EUR/USD upwards.