- SWFX market sentiment is 52% long
- Pending orders in the 100-pip range are set to buy in 52% of cases
- US Employment data sets are expected to increase volatility and spreads at 13:30 GMT
The rate has once more tested the high level of 1.1400. Although, after the testing of the high level the rate began a decline. The decline was expected to meet with a strong support level. Meanwhile, note the incoming US Employment data release at 13:30 GMT.
The European Single Currency appreciated against the US Dollar, following the US ADP Non-Farm Employment Change data release on Thursday at 13:15 GMT. The EUR/USD exchange currency rate gained 15 pips or 0.13% during a minute, right after the release. The European Single Currency continued trading at the 1.1360 area against the US Dollar.
The Automatic Data Processing, Inc. released the US ADP Non-Farm Employment Change data that came out lower than expected of 179K, compare to forecasted 195K.
Ahu Yildirmaz, the Vice President and Co-Head of the ADP Research Institute said, "Although the labor market performed well, job growth decelerated slightly. Midsized businesses added nearly 70 percent of all jobs this month. This growth points to the midsized businesses' ability to provide stronger wages and benefits. It also suggests they could be more insulated from the global challenges large enterprises face."
US Employment data sets incoming at 13:30 gmt
Last but not least this week will be the Friday's monthly US and Canadian employment data release at 13:30 GMT. This event will also be covered by Dukascopy Analytics.For this pair during the last half a year the data release has caused a move from 22 to 40 base points. If your stop loss is closer than that, it is most likely going to get triggered.
EUR/USD daily review
The common European currency managed to pass the strength of three simple moving averages on Thursday against the US Dollar. In the aftermath of the breaking of these resistance levels, the currency pair surged up to the dominant pattern's resistance line and bounced off it to begin a decline.On Friday, the decline was expected to reach the previously mentioned simple moving averages near the 1.1350 mark. In general, the pair should pass these support levels and a pivot point, which was locate at 1.1346, to continue its decline. The decline eventually should once more test the lower trend line of a junior pattern.
Although, any of the mentioned support levels can slow down the decline of the EUR/USD and force it into a retracement or a short term surge.
Hourly Chart
The daily chart's junior pattern has bene broken. It signals that there might be another surge in the borders of the larger patterns until the rate reached the upper trend line of the most dominant pattern.
Although, that can happen in more than a couple of ways. Horizontally, by surging upwards or by trading in zig-zags for the next couple of months.
Meanwhile, take into account that the resistance of the 55 and 100-day simple moving averages respectively at 1.1450 and 1.1520 will be providing resistance to a possible surge.
Daily chart
It might be due to the piercing of the pattern or the passing of the 1.1400 mark or another reason, although the neutral sentiment is gone. The Swiss Foreign Exchange traders have become 52% bullish on Friday.
Meanwhile, trader pending orders in the 100-pip range are also no longer neutral. 52% of orders in that range are set to buy. It is not enough to create a push of the currency exchange rate, but it clearly signals a change in sentiment.
It could be observed that a small part of the retail traders on the Swiss Foreign Exchange have changed their opinion, shifting the sentiment slightly to the bullish side.