- SWFX market sentiment is 64% bullish
- 65% of pending orders in 100-pip range are to SELL the Euro
- Upcoming fundamental events: US PPI m/m, US Core PPI m/m
The 55- and 100-hour SMAs near 1.1920 likely to pressure the rate lower.
The Greenback weakened against the Eurozone's single currency, following US Non-Farm Employment Change data release on Friday. The EUR/USD currency pair gained 23 pips, or 0.19%, to continue fluctuating in the 1.1971 area.
The Bureau of Labor Statistics released three data simultaneously from which two of them: Non-Farm Employment Change data and Average Hourly Earnings data came out lower-than-expected of 164K and 0.1% respectively. However, Unemployment Rate data came out better-than-expected of 3.9% instead of the 4.0% forecast, it was not enough to stop the currency to go upwards.
US Producer Price Index
The only significant data releases in this session are the US Producer Price Index and its core reading published at 1230GMT. Analysts expect that the PPI strengthened by 0.2% in April, compared to a 0.3% increase during the preceding month.
EUR/USD trades at 1.1850
The Euro should return near the 55– and 100-hour moving averages during the following hours. The upper boundary of a five-day descending channel is likewise located in this area. It is likely that pair lacks the necessary momentum in this session, thus remaining trading along the 55-hour SMA. The expected bullish reversal, however, should occur later this week.
Today's upside potential is until the 200-hour SMA at 1.20, while a fall should not surpass the 1.1775 level.
Hourly Chart
The common European currency continues to fall against the US Dollar for the third consecutive week. This massive decline has sent daily technical indicators in the strongly oversold territory.
It was initially though that a reversal might occur near the 1.22 mark. However, the decline of the Euro has continued as low as the 1.19 level. The nearest support is set by the weekly S2 at 1.1825; thus, the pair might still edge lower for some time until a bullish recovery occurs during the second part of this week.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 64% of open positions being long.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 52% bullish and the US Dollar is 60% bearish.
The market sentiment of OANDA is currently at equilibrium, compared to 51% long positions on Tuesday. Meanwhile, Saxo Bank clients remain bearish with 53% of open positions being short (+1%).
Spreads (avg, pip) / Trading volume / Volatility